Gov. Brown Signs Health Reform Bill

California will now be in compliance with federally mandated standards for health reform as of today thanks to Bill AB36 which allows parents to insure adult children (up to age 26) without taxation on the coverage.

California previously used its own system, a five-part test, to determine if the coverage could be tax deductible. Now, with the passage of the bill, the state will mirror the federal mandate. The bill was approved by the legislature March 8 and signed into law las week by Gov. Brown. California joins a list of several states jumping in line to meet federal standards including Arkansas, Kentucky, Minnesota and South Carolina.

The bills are being called “conformity bills,” a term which means they were drafted for the purpose of bringing the state in line with federal terms in order to continue federal funding where applicable.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
This entry was posted in Health, Health & Welfare, Health Reform, News & Updates. Bookmark the permalink.

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