Calif. Bill Aims To Delay ACA Requirements for Small Businesses

The California Senate Health Committee has advanced a bill (SB 1446) that would give state businesses with fewer than 50 employees an extra year to obtain health coverage that complies with the Affordable Care Act, Fox Business' "Small Business Center" reports. The measure now heads to the Senate Appropriations Committee.

Background

Under the ACA, all health plans must include 10 essential benefits. 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.

Bill Details

SB 1446 was introduced by Sen. Mark DeSaulnier (D-Concord) (Rogers, "Small Business Center," Fox Business, 5/19). State Insurance Commissioner Dave Jones (D) and the California Department of Insurance also are sponsoring the measure (DOI release, 5/8).

The bill would give businesses with fewer than 50 employees until the end of 2015 to comply with the ACA's rules or have their plans canceled ("Small Business Center," Fox Business, 5/19).

An urgency clause is included in the bill, meaning it would go into effect immediately if signed by Gov. Jerry Brown (D) (DOI release, 5/8).

Yevgeniy Feyman, with the Manhattan Institute, said the bill "doesn't make sense" because small businesses will "still have to change plans" by the end of 2015.

However, Feyman noted that California could set a standard for other states if the bill proves successful, adding that "other states may follow suit if they have enough pushback from the business community" ("Small Business Center," Fox Business, 5/19).

The bill is supported by several organizations, including:

The California Chamber of Commerce;
The California Restaurant Association;
The National Federation of Independent Businesses; and
Small Business California (DOI release, 5/8).

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