As many employers are no doubt aware, small group plans (i.e., those with fewer than 50 employees) were given the opportunity in 2013 to “early renew” and change their renewal date to December, 2013. The renewal date change, enabled employers to delay the implementation of the new PPACA compliant plans for an additional year.
Approximately, 60% of our group clients employed this solution in the 4th quarter of 2013, and were able to take advantage of their current RAF (Rate Adjustment Factor) and Provider Networks for an additional 11 months.
With December, 2014 quickly approaching, Gov Brown signed SB 1446 into law on July, 7 2014. For the second time, some employers in the small group marketplace have the option of remaining on their Pre-ACA plan designs for an additional year.
SB 1446 Eligibility Requirements
• Plan must have been in effect on December, 2013
• Grandfathered plans are not eligible
• Required notice must be distributed
• Plan must still be in effect on July, 2013
Potential SB 1446 Benefits
• Utilizing Pre – ACA rating methodology. (RAF, Family Rating, Rating Regions)
• Maintaining current provider networks
• Lower cost average compared to ACA- Compliant plans
• Not required to offer the 10 EHB’s
• No limits on annual out of pocket / deductibles
Although the bill was signed into law and became effective immediately, a few carriers in California have opted out of SB 1446. In order to determine if you qualify for the extension, and potential cost savings, please contact our office.