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

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This is excerpted from California HealthLine:

http://www.californiahealthline.org/articles/2013/6/28/assembly-rejects-bill-to-fine-big-businesses-with-workers-in-medi-cal.aspx

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:
http://healthreformupdates.com/Article.aspx?print=true&blogId=4259308775814765585&id=7002410554402653398

California HealthLine article:

http://www.californiahealthline.org/articles/2013/6/28/assembly-rejects-bill-to-fine-big-businesses-with-workers-in-medi-cal.aspx#ixzz2XYCwq2Rl