Employee Benefits Compliance, Employer Mandate, Large Employers, State-Specific Information

California Assembly Rejects AB 880—So No Fine on Large Employers with Employees on Medi-Cal


This is excerpted from California HealthLine:


On Thursday (June 27, 2013) the California Assembly rejected a bill (AB 880) that would have penalized large employers if they do not pay workers enough to keep them out of Medi-Cal, California’s Medicaid program, the Los Angeles Times reports (Terhune, Los Angeles Times, 6/27).

Details of Bill

Under the bill — which was introduced by Assembly member Jimmy Gomez (D-Los Angeles) — the Affordable Care Act threshold for fining businesses would have been lowered so that large employers would be penalized if their part- or full-time workers are enrolled in Medi-Cal.

While the amount of the fine had not been specified, the penalty could have been about equal to the cost of providing job-based coverage.

Funds raised from the penalty would have been used to increase Medi-Cal reimbursements for health care providers and subsidize state costs for the program.

Details of the Vote

Forty-six Assembly members voted in favor of the bill, eight votes short of the two-thirds majority required for passage.

The legislation previously had failed on three separate roll-call votes (Sanders, Sacramento Bee, 6/28). However, the measure could be called for reconsideration as early as next week, according to the Times (Los Angeles Times, 6/27).

An earlier Leavitt article is at:

California HealthLine article: