California Insurance Code 742.40 – (a) A multiple employer welfare arrangement shall offer health …
(a) A multiple employer welfare arrangement shall offer health care coverage benefits to any new eligible person and his or her dependents under terms and conditions no less favorable to those offered to their employers’ existing employees and their dependents, if the newly eligible person had health care benefit coverage with either the same or a different multiple employer welfare arrangement within 31 days. The new coverage shall comply with existing eligibility rules of the multiple employer welfare arrangement.
(b) A multiple employer welfare arrangement shall comply with the requirements set forth in Sections 10198.7 and 10198.9.
Terms Used In California Insurance Code 742.40
- Contract: A legal written agreement that becomes binding when signed.
- Multiple employer welfare arrangement: as used in this article has the same meaning as that contained in Section 1002(40)(A) of Title 29 of the United States Code. See California Insurance Code 742.21
- Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Insurance Code 19
(c) Notwithstanding any other provision of law, commencing January 1, 2014, a multiple employer welfare arrangement shall not offer, market, represent, or sell any product, contract, or discount arrangement as minimum essential coverage or as compliant with the essential health benefits requirement under the federal Patient Protection and Affordable Care Act, unless it meets the applicable requirements under that act.
(Amended by Stats. 2012, Ch. 266, Sec. 1. (SB 615) Effective January 1, 2013.)