California Health Insurance Regulations

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California adds its own layer of rules on top of federal benefit requirements. Employers offering health benefits must also comply with California-specific laws.

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Requirements

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• Cal-COBRA – Applies to employers with 2–19 employees, requiring continuation of health benefits similar to federal COBRA.

• Waiting Periods – California limits waiting periods for benefits eligibility (generally 60 days).

• State Notices – Employers must provide state-specific notices, such as the Summary of Benefits and Coverage (SBC).

• Coverage Rules – California has additional mandates for small-group health insurance plans (e.g., covering essential health benefits).

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Why this matters:

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• California laws apply even to very small employers (2–19 EEs), so businesses often get caught off guard.

• Failure to comply can result in fines, loss of coverage, or employee claims.

 

At Sprout & Vine, we manage both federal and California-specific requirements, ensuring your benefit programs meet every layer of compliance.