Governor Brown Expected to Sign “Grandmothering” Bill

SB 1446, the “Grandmothering” bill has moved rapidly and unopposed through both Houses in the California Legislature. It is waiting to be signed by Governor Brown. Once the bill is signed into law, it will go into effect immediately as an “urgency statute.”

SB 1446 would allow a small employer health care plan that was in effect on December 31, 2013, and that is still in effect as of the date this bill is signed, and that does not qualify as a grandfathered health plan under the ACA, to be renewed until January 1, 2015, and to continue to be in force until December 31, 2015.   The bill also states that these plans must be amended to be in compliance with the ACA guidelines as of January 1, 2016, “in order to remain in force on and after that date.”

It is important to keep in mind that this bill is not a mandate and employers are not required to keep these plans in place. This bill is meant to be a “transitional measure” to allow small employers more time to comply with the rules set down by the ACA.

Also of note, the bill does not address rates at all, so expect the premiums for these plans to go up.