CA Parent Healthcare Act – Effective 1/1/23 for CA Individual Health Plans

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.

About Michelle Cammayo, Compliance National Practice Leader, Employee Benefits

Michelle Cammayo has close to 20 years of Employee Benefits experience specializing in all lines of health and welfare benefits. Today, Michelle works closely with clients and partners to provide guidance in areas of the law including ERISA, HIPAA, COBRA, FMLA and PPACA. She is also the IMA National Practice Leader for Compliance and endeavors to ensure IMA helps its clients manage and eliminate risk in the most effective manner. She is passionate about educating others and her passion for this shined in the COVID era where Michelle conducted weekly and then monthly webinars providing guidance to employers. Her podcast, Cammayo’s Compliance Talk, has gained popularity in the last three years to become a favorite amongst our clients. She also contributes regularly to our Blog and has authored several articles for industry-related newsletters. Michelle’s consultative approach with employers provides practical advice as employers endeavor to be compliant.

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