SB 2: Effects on Employers and Employees

Publication Date: October 2004

Publisher: California HealthCare Foundation

Author(s): Kanika Kapur; M. Susan Marquis; Lynn Taylor

Research Area: Health

Type: Brief

Coverage: California

Abstract:

NOTE: On November 2, the California Health Insurance Act of 2003 (SB 2) was struck down at the polls when voters rejected Proposition 72. The California Health Insurance Act of 2003 (also known as Senate Bill 2 or SB 2) creates a play or pay program for eligible workers at medium and large firms. Beginning in 2006, employers with 200 or more employees will be required to show evidence of coverage or pay a fee to enroll their employees and uncovered dependents in the State Health Purchasing Fund. The program will be expanded in 2007 to include employers with 50 to 199 employees, but the requirement applies only to employees and not dependents. This snapshot report provides an overview of the market and demographic context surrounding SB 2, including: current characteristics and coverage practices of private sector employers in California; workers and their dependents who will be affected; and how the measure is likely to change workers' health insurance status. Both private and public sector workers and dependents are included in the analysis.