Understanding the Grandmothering Bill

The new SB 1446 law has changed the way that businesses can offer health insurance to their employees. Signed into law by Governor Jerry Brown, the new law is known as the “Grandmothering” bill, and it immediately took effect the date it was signed.

SB 1446 now allows small business employers already offering a health care plan to their employees that met certain restrictions and requirements to not be forced to renew their policy until January 1, 2015. In order to qualify for the Grandmothering bill, the business’s health care plan must have been in effect when the new bill was signed into law on July 7, 2014, and be a policy that does not qualify as a grandfathered health care plan according to the Affordable Care Act, or ACA. If the policy qualified, then it would be allowed to stay active until December 31, 2015.

The Grandmothering bill also has provisions that state that these specific policies have to be amended in order to comply with the ACA guidelines as of January 1, 2016 in order for them to “remain in force on and after that date.”

This new bill will help small business employers in California who chose to renew their plans early in 2013. The bill does not mean that small businesses do not have to make any changes to their policy. In order to still be in compliance with the ACA guidelines, they must offer state-based mandated benefits, including no lifetime caps on benefits, coverage for autism, and maternity care.

Make sure to keep in mind that this bill is not a strict mandate, and gives small businesses the option to change their policy if they choose to.

For all of your health insurance needs throughout Sonoma County and surrounding areas, contact Sackett & Associates Insurance Services. We can provide you with the most comprehensive coverage to ensure that you and your family have the right coverage for any unfortunate situation.