AB 880 by Assemblymember Jimmy Gomez (D-Los Angeles) is an attempt to renegotiate the federal Affordable Care Act (ACA) at a time when California already faces the daunting task of implementing this new program of insuring Californians.  Specifically, AB 880 will force larger employers to pay an estimated additional penalty between $6,000-$15,000 to the state for any employee who works eight hours or more a week and choses to use Medi-Cal – even if they are offered health coverage by you, the employer. The additional penalty is on top of another existing penalty. The additional penalty will go to the state government’s Medi-Cal program, with 10 percent used to fund state bureaucracy.

This bill confuses & jeopardizes our State’s implementation of Federal ACA.  Whether you like the new law or not, the fact is that it is reality and California must implement it.  And the state has less than a year to complete its preparations to enact the federal health care program and it needs to focus on getting this done before adding new mandates, penalties and fines.

AB 880 would unfairly require California employers to pay an additional penalty that is three to six times larger than the federal health care penalty. AB 880 unfairly punishes employers who offer health care coverage – even to employees who work only eight hours a week — but whose employees still choose to use Medi-Cal.

California is still tied for the highest unemployment rates in the country – additional fines and penalties will further slow and stifle economic recovery. And the vague language in AB 880 allows ample opportunity for an onslaught of lawsuits driving up employers’ cost of doing business in California.

We are standing with a broad coalition of businesses to oppose this measure.  Click here for more information about this troubling piece of legislation.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)