Date: Jun 27, 2013

Today, a union-backed measure that would impose fines on large employers when their eligible employees access Medi-Cal benefits failed in the Assembly.  AB 880 (Gomez, D-L.A.) is a major priority for the California Labor Federation and other unions, and is strongly opposed by a large coalition of business, agriculture and nonprofit entities.  WG is a member of the opposition coalition.  With 46 votes in favor and 27 opposed, the bill failed to reach the two-thirds required (54 votes) but was granted reconsideration, meaning it can be voted on again on the next day the Assembly meets.

The Affordable Care Act imposes a $2,000 per employee penalty on employers who fail to offer qualified affordable health benefits for every employee who accesses subsidized health benefits from the state exchange.  AB 880 ignores this by requiring employers of more than 500 employees (which includes employees who work as little as 12 hours a week and 45 days in a calendar year) to pay between $6,000 and $15,000 to the state for every employee who declines Affordable Care Act-compliant health care benefits and chooses to enroll in Medi-Cal instead.

WG Staff Contact

Dave Puglia
President & CEO

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