Last October, Gov. Newsom signed CA AB 570 into law which is set to go into effect on January 1, 2023. The law does not apply to employer group health plans, but we are finding misinformation circulating as the date draws near.

What is it? A law that requires CA individual health plans issued or renewed on or after January 1, 2023 to provide dependent coverage for qualified dependent parents or stepparents. In other words, CA individual health plans must extend eligibility to qualified dependent parents and stepparents.

Who is a “qualified parent or stepparent”? The dependent parent or stepparent must meet the definition of a qualifying relative under Section 152(d) of IRS rules and live in the health insurer’s service area.

Does this mean employer group health plans must cover qualified parents or stepparents? No. The law only applies to CA individual health plans.

Many CA parent and stepparents can already enroll in CA individual health plans without the support of AB 570.

AB 570 is expanding healthcare access for those “qualified parents or stepparents” that are not eligible for Medicare or who don’t have enough quarters of Social Security for free Medicare Part A coverage. This might include dependent parents who are undocumented immigrants.

Read the full press release from the sponsoring Assembly Member here.

 

 

Let your IMA Benefits team know if you have any questions.  We review affordability every year with our applicable large employer (ALE) clients and are happy to assist as you strategize for your plan year beginning in 2022.

IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information.

This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.

Recent News

More news