California Governor Jerry Brown has signed into law SB 1446, known as the “grandmothering” bill and “transitional relief.”
The new law allows qualifying non-grandfathered small employer health plans to remain in effect until December 31, 2015 even if they don’t meet certain requirements under the Affordable Care Act.
The measure takes effect immediately and allows small businesses to renew coverage at any point in the year (Robertson, Sacramento Business Journal, 7/7).
Under the ACA, all health plans must include 10 essential benefits, including hospitalization, prescription drugs, maternity care and mental health treatments (O’Neill, “KPCC News,” KPCC, 7/7).
The law’s employer mandate provision states that any health plans that do not meet all 10 requirements will be canceled at the end of 2014.
