On Sep. 11, CAL LEG passed bill on MEWA for engineering members.
CAL LEG passed bill AB 2434 relating to multiple employer welfare arrangements large group plan contracts for members in engineering, surveying, and design industry.
Amended to add Section 1357.505 to CAL health, safety code, CAL LEG 2-2.2-3.16.
Bill Provisions
Authorize assoc. of employers that sponsors fully insured multiple employee welfare arrangement (MEWA) register by Jun. 1, 2025, to offer large group plan contracts.
If requirements met, including association established before Jan. 1, 1966, sponsor of MEWA, and to small employer members in engineering, surveying, design industry.
Require association and MEWA to annually file evidence of ongoing compliance.
After Jun. 1, 2025, prohibit plan from marketing, issuing, amending, renewing, deliver large employer coverage to association or MEWA that provides benefit to CAL resident.
Unless registered, in compliance with requirements, filed applications for registration.
Requires Department of Managed Health Care (DMHC) to provide to the health policy committees of CAL Legislature with the most recent filings, by Jun. 30, 2028.
Analysis of MEWA impacts on small employer health insurance market by Jul. 1, 2026.
Department must issue guidance to health care service plans on requirements.
Bill will repeal authority imposed by these bill provisions on Jan. 1, 2030.
Legislative History
On Feb. 13, 2024, bill introduced in Assembly; on May 16, 2024, bill passed Assembly.
On May 16, 2024, bill introduced in Senate; on Aug. 28, 2024, bill passed the Senate.
On Aug. 29, 2024, bill amendments concurred; on Sep. 11, bill delivered to governor.
Effectiveness
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
Sep. 22, 2024 CAL LEG Governor Approved Bill
On Sep. 22, 2024, CAL LEG reported bill AB 2434 signed by governor; enacted Ch 398.
Regulators
CAL LEG
Entity Types
Ins
Reference
Ch 398, 9/22/2024; Bill, AB2434, 9/11/2024; Citation: CAL LEG 2-2.2-3.16;
