California Unveils Kid Coverage Draft

In California, the state will require all sellers of individual health insurance to offer child-only coverage.

Insurers must offer the child-only coverage at all times during the year.

During specified open enrollment periods and late enrollment periods, an insurer can charge children with health problems up to 200% of the standard rate.

The law does not set specific limits on premiums for children who enroll outside the open enrollment and late enrollment periods, but insurers that charge children who enroll outside of the special periods high rates must reduce the rates to 200% of the standard rate when the next open enrollment period starts.

“If an insurer charges a surcharge,… the insurer must notify the insured, at the time that the surcharge is imposed, that the surcharge will be discontinued twelve months after the effective date of the child’s coverage,” according to the guidance draft. “An insurer must discontinue such surcharge at the appropriate time with no action required from the insured.”

Comments on the guidance are due today.