California Group health
insurance and Part Time
employees
In California, the employer has the
option to include part time
employees or not from a
California
group health insurance plan.
This is an important decision to
make for the employer as it impacts
future options for employee benefits
and cost considerations for providing group
health coverage to a company.
Let's take a look at how part time
employees figure into the choice to
offer group health coverage.
What determines part-time employee
status for California group health
insurance
According to State law, full time
employees are those deemed to work
30+ hours per normal work week for
at least 50% of the previous
calendar quarter and must have
completed the past
the probationary period selected by
the employer.
Part-time status, in terms of
Group
health insurance is designated as
the following:
Minimum
hours per week for
eligibility is 20. The
employee must have worked at
least 20 hours, but not more
than 29 hours, per normal
work week, for at least 50%
of the previous calendar
quarter and must have
completed the probationary
period selected by the
employer.
The option to offer Part Time
employees coverage affects future
concerns
It is the employer’s option to offer
health coverage to Part time
employees. If that option is
exercised, all similarly situated
individuals must be offered coverage
under the employer’s benefit plan.
Employer contribution, waiting
period, and benefit choice (which
may include Dental) must match the
coverage available to full-time
employees.
Participation requirements are based
on the total number of Part Time Employees and Full Time Employees
(full-time employees).
The
California health carrier may
require all necessary information to
document the hours and time periods
in question, including, but not
limited to, payroll records and
employee wage and tax filings.
Changing status of part-time
coverage in the future
To add Part Time Employee
eligibility to an existing group, a
new employer application, DE-6, and
application/declinations on all
eligible Part Time Employees are
typically required from the carrier.
Existing groups may add this option
on their
anniversary date.
Any decision you make for part time
eligibility will remain in effect
till anniversary date. This is
very important as you may have new
part time employees for which you
want to offer coverage after you
designate Part Time eligibility for
group health coverage.
Anthem Blue Cross has started
to allow employees down to 15 hours
to be eligible for Part time Group
eligibility. The employer has
the option of adopting the 15-29
hours range or the more traditional
20-29 hour range for part-time
employees if health insurance is
being offered to part-time
employees. The other carriers
will probably follow suit as all
carriers are looking for innovative
ways to expand health insurance to
more Californians. Keep in
mind that this expansion affects the
eligibility requirements to qualify
for group health insurance such as
the 75% participation requirement.
Other
important
concepts
to help
you
understand
your
California
group health
insurance
quote
are:
Small
Group
RAFF
Why
offer
Small
Group
health
insurance
Guide to
Group
health
insurance
in
California
Download
the
health
application
or apply
online
California
group
health
insurance
CALIFORNIA
GROUP HEALTH