SB-1446 UPDATE – July 7th 2014

SB-1446 Grand Mothering

Recently we sent you information on SB-1446, the “Grandmothering” Bill, which would provide some small employers with non-grandfathered health insurance policies in effect as of December 31, 2013, the option to renew their existing coverage for one year, rather than be required to move to new coverage by the end of 2014. This Bill was signed into law on June 7, 2014 by Gov. Brown.

Companies SB-1446 Applies to

This new law provides employers with 50 or fewer employees the ability to renew their current small employer health care service plan or health insurance policy in effect as of December 31, 2013, and still in force at the time SB 1446 was signed into law. SB 1446 will permit these Grandmothered plans to continue to renew until January 1, 2015 and those policies to remain in force until December 31, 2015. This change moves state law closer to recent federal policy changes allowing for a longer transition period to ACA-compliant policies.

How SB-1446 will affect your Health Insurance

In other words, our customers will be able to renew your current coverage for another 12 months from their current renewal date. At this time, it is not mandatory for insurance companies to offer this Grandmothering option. I do expect most insurance companies to offer the option. For our customers whose choose to take advantage of the Grandmothering option, I am anticipating the rate increase to be between 7% and 15%. I expect to have the ability to quote your current plan within the next 30 days as the carriers publish and load the rates into our quoting system.

Rate increase are ranging from 4% to 40% depending on the demographics of your employees. I am unable at this time to let you know which option is going to be the best for you. In general if your company receives a rate increase of 20 to 40% then staying with your current plan will be a great option for you. If your rates increase is below 15% then the right answer will appear when I provide you a quote for next year’s rates.