This past week false communications were sent out by different organizations stating that CalCPA Health is unable to renew policies due to the California law SB 1375. These communications are inaccurate. These organizations were negligent in not verifying that CalCPA Health has certain exemptions from SB 1375. This law has no effect on CalCPA Health’s business, although it does restrict other Association Plans and Trusts in California.

History behind SB 1375

Back on September 22, 2018, Governor Brown signed a California law, SB 1375, which affected many small firms’ group health insurance. The law changed the Health Insurance Code to reclassify certain small employer groups as individuals. As of January 2020, insurance carriers began enforcing this law, resulting with several firms receiving health plan cancellation notices.

SB 1375 defines groups that consist entirely of owners/partners, and/or W-2 employees that are spouses of owner/partners, as not eligible for group health coverage. Even though these entities may be classified as employer/employees by other regulations, (e.g. Workers’ Comp, payroll tax, etc.,) SB 1375 specifically states they do not qualify for group health coverage and may only purchase individual plans.

The affected firms will need to obtain individual health insurance, rather than the small employer group plans they currently have. Individual health insurance is typically more expensive with less provider network and benefit plan choices than small group plan offerings.

Fortunately, for CalCPA members and their firms, CalCPA Health received certain exemptions from SB 1375, which generally allows us to handle the affected firms as groups and not as individuals.

Are you affected by SB 1375 or know a CPA who may be?

CalCPA Health may be able to continue to provide small group coverage.

CalCPA Heath offers over 30 healthcare plans through Anthem Blue Cross, which provides the largest network of doctors and hospitals in California, for all of our CalCPA members firms (solo-practitioner, small group, large group). CalCPA Health members also have access to Delta Dental and Vision Service Plan (VSP). In addition to great premium rates and benefit plans, an array of value-adds are included at no cost to enrolled employees of CalCPA Health member firms.

For more information and/or to obtain a health plan proposal, contact CalCPA Health at 866-428-4358 or fill out the form to the upper right to start your online quote today.

Health plans by CPAs,  for CPAs since 1959