California Health and Safety Code

§ 1357.612

HSC § 1357.612 Effective Jan 1, 2013Div. 2 · Ch. 2.2 · Art. 3.17

Statute text

Premiums for grandfathered contracts renewed by plans on or after January 1, 2014, shall be subject to the following requirements:

(a)(1) The premium for in force business shall be determined for an eligible employee in a particular risk category after applying a risk adjustment factor to the plan’s standard employee risk rates. The risk adjusted employee risk rates may not be more than 110 percent or less than 90 percent. The risk adjustment factor applied to a small employer may not increase by more than 10 percentage points from the risk adjustment factor applied in the prior rating period. The risk adjustment factor for a small employer may not be modified more frequently than every 12 months.

(2)The premium charged a small employer for in force business shall be equal to the sum of the risk adjusted employee risk rates. The standard employee risk rates shall be in effect for no less than 12 months.

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Legislative history

Added by Stats. 2012, Ch. 852, Sec. 6. (AB 1083) Effective January 1, 2013.