Here is an article by Craig Blankenhorn that explains the new “Grandmothering” law.

Governor Brown announced this week he signed CA SB 1446, the “Grandmothering” bill. SB 14465 moved rapidly and unopposed through both houses in the California legislature. Now that the bill has been signed into law it will go into effect immediately as an “urgency statute.”

SB 1446 will allow a small employers health care plan that was in effect on December 31, 2013, and that is still in effect as of the date this bill was signed (July 7th, 2014) and that does not qualify as a “grandfathered’ health plan under the ACA to be renewed until January 1, 2015, and to continue to be in force until December 31st, 2015. The bill also states that these plans must be amended to be in compliance with the ACA guidelines as of January 1, 2016, “in order to remain in force on and after that date.”

This will help some plans that elected to early renew at the end of December 2013. The small employer group policies affected by SB 1446 must still include many ACA and State-based mandated benefits such as preventive healthcare coverage without co-pays or deductibles, no lifetime caps on benefits, maternity care, coverage for autism and the elimination of gender discrimination in setting premiums.

It is important to keep in mind that this bill is not a mandate and employers are not required to keep these plans in place. This bill is meant to be a “transitional measure” to allow small employers more time to comply with the rules set down by the ACA.

Please Note:

• Although CA SB 1446 was passed July 7th, it appears that the carriers are consideringSeptember to December effective dates only.
• “Grandmothering” refers only to non-grandfathered plans in effect on or beforeDecember 31st, 2013.
• If your plan renews on or before August 1, 2014 you are not eligible for “Grandmothering.”
  We don’t know what the rates will be for “grandmothered” plans. We hope they will be included in your renewal packets.
• Most all the carriers seem to be leaning toward allowing “grandmothered” plans. Kaiser Permanente has a “Keep Your Plan” form that must be turned in by August 8th for September 1st renewals and August 19th for October 1st renewals.

Click here to view a copy of the law.