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. The bill failed to muster the 2/3’s vote needed for passage from the California State Assembly, effectively killing the bill for the time being.

AB 880 sought to 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 per week and chooses 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.

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 continue to stand with a broad coalition of businesses to oppose this measure should it be brought up again.


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