DB101 California - AB 1672: Frequent Pitfalls

Failing to Enroll in New Health Coverage Within 180 Days

Since the federal HIPAA protections only allow a 63 day gap between old and new health coverage, retaining the six month health coverage credit through AB 1672 is important for individuals with pre-existing conditions. You will need to retain your previous coverage so that there is not a gap in coverage for more than 180 days to use AB 1672. If you fulfill these requirements, you can enroll in new coverage without a pre-existing condition exclusionary period.

Confusing Initial and Open Enrollment Periods

There are distinct differences between initial and open enrollment periods.

The initial enrollment period is the first time employer-sponsored or association-affiliated coverage is offered to you. If you don’t sign up during the initial enrollment period, pre-existing condition exclusionary periods may be longer than they otherwise would be.

An open enrollment period is the annual period of time that you are allowed to make changes to your benefits. During this time period you are allowed to change, add or delete coverage.

Confusing Group and Individual Health Coverage

In some cases, employers or associations will offer to pay for individual health coverage. In those cases, you may not be eligible for the employer-sponsored protections. Contact the California Department of Insurance

, the Calfirornia Department of Managed Health Care (DMHC)

, or the United States Departement of Labor

. The DMHC has a helpful chart

that tells you which agency to contact.