Employers in California with 2 to 50 full-time employees are
subject to special health insurance rules. Generally, federal
and California laws do not require an employer of any size to
offer health insurance to its employees. However, if coverage is
offered at all, it must be offered to all full-time employees,
and may optionally be extended to all part-time employees (those
normally working between 20 and 29 hours per week).California
law is designed to encourage all small employers to obtain group
medical coverage, even if the employer employs relatively heavy
users of health care services. The insurance carrier cannot deny
a small employer coverage if all of its employees who do not
have other coverage are included. And although a carrier may
impose whatever premium it chooses on its small employer
clients, the carrier has a very limited ability to charge higher
premiums to particular employers (such as those that are heavy
users of health care services). The carrier must set a standard
premium rate, and then may charge an employer 10% more or less
than the standard premium, generally depending on that
employer’s usage experience.
Small groups are generally subject to almost all of the ERISA,
COBRA and HIPAA regulatory requirements, the most significant
exceptions being that, generally, groups under 20 are not
subject to federal COBRA rules and groups under 100 are not
subject to Form 5500 filing requirements.
- Request Proposal
- Apply for Coverage
- Also read about Health Savings Accounts and
Cafeteria Plans
- Other Group Benefits
- Contact Us
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