State Health Insurance Exchange Announces Plans, Rates

On May 23, Covered California announced that 13 health insurance plans will compete to provide coverage to millions of Californians through the state’s new health exchange.

Covered California is California’s new health insurance marketplace and was established under the Affordable Care Act (ACA). It will help individuals and small businesses compare health plans, get answers to questions, find out if they qualify for federal tax credits and enroll in a plan that meets their specific needs.

Starting in 2014, employers with 50 or more full-time or “full-time equivalent” employees during the previous calendar year must offer at least minimum essential health care coverage or pay a penalty.

Available Health Care Plans

According to Covered California, the plans reflect a mix of large non- profit and commercial plan leaders, along with well-known Medi-Cal and regional plans.

This tentative selection of health plans is subject to a rate review by state regulators.

In the news release, Covered California explains that it is difficult to make a direct comparison of these rates to existing premiums in the commercial individual market because in 2014, there will be new standard benefit designs under the ACA, and the actual change in an individual’s premium will depend on the person’s current insurance coverage.

Please visit CalChamber.com for full coverage.

“Job Killer” Singles Out California Employers with New Mandates, Penalties

A California Chamber of Commerce-opposed “job killer” bill mandating a new state health care program and placing another California-only requirement on employers will be considered by the Assembly Appropriations Committee on May 15.

AB 880 (Gomez; D-Los Angeles) increases health care costs and increases discrimination litigation by:

• Assessing large employers a penalty if any of their employees who work as little as eight hours per week enroll in California’s Medi-Cal program; and
• By expanding the Labor Code to include a protected classification for any person who is enrolled in California’s Medi-Cal program or in the California Health Benefit Exchange.

New, Costly Employer Mandate
Specifically, AB 880 will force larger employers to pay an estimated additional penalty between $6,000 to $15,000 to the state for any employee who works eight hours or more a week and chooses to use Medi-Cal. The additional penalty is on top of another penalty that the federal health care program already requires.

The additional penalty will go to the Medi-Cal program, with 10 percent used to fund state bureaucracy. These penalties shift costs of funding public health programs from government to employers.

Please visit CalChamber.com for detailed coverage of this complex topic.

Questions and Answers: California’s Health Exchange

In the latest edition of CalChamber News, the California Chamber of Commerce spoke with Peter Lee, executive director of Covered California, the state’s health exchange.

Covered California is the first-in-the nation online health insurance marketplace established under the Affordable Care Act. Covered California is designed to help individuals and small businesses compare health plans, get answers to questions, find out if they qualify for federal tax credits and enroll in a plan that meets their specific needs.

Covered California will go live in January 2014, but many small businesses still have questions about the marketplace as well as their options and obligations. In this installment of CalChamber News, Lee clarifies what small businesses (2-50 employees) need to know about the state’s new insurance marketplace.

Designed to offer small businesses and their workers simplicity and a chance for affordable health coverage, Covered California aims to level the playing field and offer employers better choices at lower costs. Covered California will provide California small businesses one more avenue to maintain a healthy, productive workforce.

IRS Releases 2013 Pension Plan Limitations

The Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013. 

In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.  However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.

The IRS adjustments make changes to:

• The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan
• The deduction for taxpayers making contributions to a traditional IRA
• The AGI phase-out range for taxpayers making contributions to a Roth IRA
• The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers

For more information, visit the IRS website.

Gail Cecchettini Whaley, Employment Law Editor/Staff Counsel

SDI Online Services Enhanced For Employers

California's Employment Development Department administers the State Disability Insurance (SDI) program, which is a partial wage-replacement insurance plan for California workers.  

SDI programs state-mandated and funded through employee payroll deductions. SDI provides affordable, short-term benefits to eligible workers. Workers covered by SDI are covered by two programs: Disability Insurance (DI) and Paid Family Leave (PFL).

California employers can take advantage of SDI’s recently enhanced and automated Online Services. Employers can now use SDI Online to access and submit electronic Notice of Claim forms. In addition, employers can also view claim information online.

To register, visit:
SDI Online
SDI Online En Español

If you have previously registered with SDI Online and want to log in to your account, visit:
SDI Online Login
SDI Online Login En Español

CalChamber members can visit HRCalifornia’s page on SDI to learn more. In addition, employers can visit the California Employment Development Department’s website.