Covered California for Small Business Offers Special Open Enrollment for Employees to Take Advantage of SB 78

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While the federal government eliminated the minimum health care coverage mandate under the Affordable Care Act, the California Legislature passed SB 78 on June 27, 2019, which among many other things, institutes an individual mandate requiring California residents and their dependents to obtain minimum health coverage throughout the year beginning January 1, 2020 and to avoid paying penalties when filing 2020 state income tax returns in 2021.

How Covered California for Small Business (CCSB) Can Help:

CCSB will allow employees and/or their dependents, who previously declined coverage during their 2019 plan year, a special open enrollment (SEP) through the end of January 1, 2020, for a coverage effective date of January 1, 2020.

How Employees Can Enroll:

1. Visit the CCSB Applications and Forms page to access and download an Employee Change Form for the applicable special enrollment period.
2. Have the employee fill in and sign with their selected coverage options. Select “Loss or Gain of Other Coverage” as Reason for Change.
3. Return to CCSB by:
   – Uploading the Change Form in the MyCCSB employer portal, or
   – Emailing CCSBeligibility@covered.ca.gov.

For more information regarding the penalty and exemptions, please visit Covered California Penalty and Exemptions.

Beginning in 2020, California Residents Must Either:

• Have qualifying health insurance, or
• pay a penalty when they file their state tax return, or
• obtain an exemption from the requirement to have coverage.

Many people already have qualifying health insurance coverage, including employer-sponsored plans, coverage purchased through Covered California or directly from insurers, Medicare, and most Medicaid plans.

Brokers and agents can provide great service to their clients who offer CCSB medical plans by explaining the new mandate and CCSB’s solution for employees and dependents currently without coverage. For more information, contact Claremont Insurances Services, a CCSB general agent partner.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.