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.