ACA Age-Band Update for 2018

Changes to the age band premiums for small group insurance (1-100 employees) will begin to take effect in 2018, at your renewal. Presently, insurers assign a single banded premium rate for all individuals ages 0-20, with individual age rates starting at age 21 upward (to age 63). Under the new rating system, effective January 1, insurance carriers updated the one banded premium rate to ages 0-14 and will now assign a single rate to each year of age as early as age 15. As a result, employers will begin to see a premium increase for those that include dependent coverage.

New Parent Leave Act

Beginning January 1, 2018, employers in California with 20 or more employees within 75 miles must offer up to 12 weeks of unpaid time off within one year of when a new child is born, adopted, or placed in foster care. Employees are eligible for this leave only if they have worked for the employer for more than 12 months and have done at least 1,250 hours of work in the 12 months immediately prior to taking the leave.

During the leave, employers must continue to pay the usual portion of the employee’s health insurance premiums, though they will be able to recover those funds if the employee does not return to work for a reason other than a serious medical issue or circumstance not within the employee’s control. If both eligible parents work for the same company, the leave may be limited to 12 weeks between the two of them.