Employers that sponsor health plans that provide coverage that meets the individual mandate's MEC requirements must provide a written statement to each employee or former employee. (Photo: Shutterstock)
There are two new laws governing employee benefits that will affect employers with California employees beginning Jan. 1, 2020: a new individual health coverage mandate and a new notice requirement related to flexible spending accounts.
|Health coverage mandate for individuals
The first new law imposes a mandate on all California residents to obtain health coverage for themselves, their spouse (or domestic partner), and their dependents beginning on Jan. 1, 2020. The coverage must meet minimum essential coverage (MEC) requirements as defined by California law. Individuals who do not comply will face California state tax penalties unless they qualify for an exemption from the law. The law also increases premium subsidies to individuals for coverage through Covered California.
The law does not require the employer to give employees any immediate notice of the new individual mandate. Instead, the state of California will notify all individuals who did not indicate on their individual income tax returns they and their dependents were enrolled in and maintained minimum essential coverage for the preceding year.
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