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Large Group Renewal Notice Timeframe Changes from 60 Days to 120 Days

Kaiser Permanente provided the following update on California's AB 731 regarding renewal notices:


Effective January 1, 2020, a new California law (AB 731) requires that all large groups must receive notice of changes to rates and benefits 120 days prior to their renewal date. In prior years, the group was notified 60 days prior to their renewal date and brokers were notified at least 14 days in advance of the group’s notice. Because of the transition to the new 120 day requirement, Kaiser Permanente will not be able to provide advance renewal notice information to the broker for the May 2020 and June 2020 renewals. Kaiser Permanente will strive to resume providing advance renewal notice information to their brokers starting with the July 2020 renewals.


The new law also introduces numerous new rate filing and related requirements for health plans operating in California. These requirements take effect later in 2020 and 2021. Further communications will be forthcoming throughout the year as new requirements take effect.


Please note that AB 731 applies to health plans regulated by both the Department of Managed Health Care (DMHC) and the California Department of Insurance (CDI), and these regulators may take slightly different approaches to the timing of the law. Kaiser Permanente will adhere to implementation standards as specified by the DMHC. Kaiser Permanente will continue to provide updates as regulators issue additional guidance on this law.


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