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ARTICLE · 22 MARCH 2004

California Senate Bill 2 (2003)

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California Senate Bill 2, 2003 Cal. Stat. 673, or the Health Insurance Act of 2003 (the "Act"), mandates that medium employers (those with 20 to 199 employees in California) and large employers (those with 200 or more employees in California) either offer a minimum level of health care coverage to their employees or pay a "Fee" to the State to fund a state-run health insurance program, designated the State Health Purchasing Program (the "Program").

United StatesEmployment and HR
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By Sarah Heck Griffin and Brian T. Holmen

California Senate Bill 2, 2003 Cal. Stat. 673, or the Health Insurance Act of 2003 (the "Act"), mandates that medium employers (those with 20 to 199 employees in California) and large employers (those with 200 or more employees in California) either offer a minimum level of health care coverage to their employees or pay a "Fee" to the State to fund a state-run health insurance program, designated the State Health Purchasing Program (the "Program"). Signed into law on October 5, 2003 by a beleaguered Governor Gray Davis, the Act was criticized by many business groups that immediately mobilized to work for its repeal. The California Chamber of Commerce and other business groups have been successful in qualifying a referendum that will ask California voters to rescind the Act. Because this referendum will be placed on the California ballot in November of 2004, this Commentaries will review the sweeping mandates of the Act.

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