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Should California Prohibit ‘Skinny’ Health Insurance Plans From Large Employers?

California lawmakers are considering a proposal to prohibit large employers from offering workers “skinny” health plans in California.

AB 248 by Assembly member Roger Hernández (D-West Covina) would prevent companies with 50 or more workers from offering insurance plans that cover less than 60% of the cost of essential care.

Under federal and state law, limited benefit — or “skinny” — plans are not allowed in the individual and small group markets. This bill aims to close the large employer loophole in California.

Similar legislation by Hernandez was approved by the Legislature last year but vetoed by Gov. Jerry Brown (D).

We asked legislators, consumer advocates, employers and insurers to weigh in on the proposal. We received responses from: