Group health insurance, on the other hand, is coverage paid for with regular premium payments; examples include Preferred Provider Organizations (PPOs), Point of Service (POS) and Indemnity Plans.

In contrast to health insurance:

• Health Maintenance Organizations (HMOs) are prepaid health plans and not defined as insurance.
• Self Insured Trusts pay medical benefits through a trust fund set up by employer, union or association resources.

• Defines the size of an employer group in California as 2 or more individuals;
• Defines (in California) that a pre-existing condition is one for which you received treatment within six months prior to enrollment in group heath coverage;
• Allows you to use credit from previous private health coverage of six months or more to eliminate any pre-existing condition exclusionary period when entering new group health insurance;
• Allows a gap between a prior private health coverage plan and new coverage of up to 180 days; and
• Access to group health coverage for small employer groups in California through a health insurance purchasing pool known as PacAdvantage.

AB 1672 does not include Medicare or Medi-Cal as previous private health coverage.

• Health Maintenance Organization (HMO) coverage accessed through groups such as an employer or association do not contain pre-existing condition exclusionary periods in California.
• Self Insured Trust coverage through groups can have up to a 12-month pre-existing condition exclusionary period nationally, and are not covered under AB 1672.