FSAs Affected by New 90-Day Waiting Period in CA

On Friday, August 15th, California Governor Jerry Brown signed into law legislation to better align the state’s health coverage waiting period requirements with federal law.
While the Affordable Care Act (ACA) had established a 90-day waiting period that applies broadly to employers nationwide, California had established a 60-day waiting period. The intent of Senate Bill (SB) 1034, authored by Senator Bill Monning (D-Carmel), is to resolve confusion between the state and federal laws and to better conform to provisions of the ACA.
SB 1034 is a product of numerous discussions among state regulators, small business groups, health insurance organizations, consumer organizations, and CAHU to provide clarity on the allowable waiting periods.
More information will be coming soon as to when existing businesses will be able to take advantage of the new waiting period regulations and what waiting period options will be made available by the carriers. This will also affect all BeneFLEX clients in California that have the FSA and were changing their FSA plan documents to match up with the California waiting period of 60 days. If any FSA clients still have questions regarding the FSA plan document requirements, they should contact BeneFLEX at info@beneflexhr.com.