This page is HISTORICAL

see our new page showing the complex legal reasoning that seems to go agains the plain meaning of the law.


Small Employer’s under Health Care Reform (AB 1083    (Insurance Code 10753 (q) (1)))will only require  1 or more employees, including an owner or partner, rather than 2 under current law. (AB 1672).

See this page for the latest and most complete information.

This  means that Employer Groups of 1 employee or more can use the SHOP Program -Fact Sheet though us as their agent with  no more premium than going direct. (Congressional Findings on the benefits of an agent)

Citations & References

AB 1083    (Insurance Code 10753 (q) (1))


(q) (1) “Small employer” means either of the following:

   (A) For plan years commencing on or after January 1, 2014, and on or before December 31, 2015, any person, firm, proprietary or nonprofit corporation, partnership, public agency, or association that is actively engaged in business or service, that, on at least 50 percent of its working days during the preceding calendar quarter or preceding calendar year, employed at least one, but no more than 50, eligible employees,

(f) “Eligible employee” means either of the following:

   (1) Any permanent employee

[not an Independent Contractor 1099]

who is actively engaged on a full-time basis in the conduct of the business of the small employer with a normal workweek of an average of 30 hours per week over the course of a month, in the small employer’s regular place of business, who has met any statutorily authorized applicable waiting period requirements. The term includes sole proprietors or partners of a partnership, if they are actively engaged on a full-time basis in the small employer’s business, and they are included as employees under a health benefit plan of a small employer, but does not include employees who work on a part-time, temporary, or substitute basis.

On the other hand…

Michael Lujan was very explicit in 2 presentations to CAHU and LAAHU, an EE is someone who is listed on a DE9C.  Sole Proprietors and partners are normally not on a DE9C.  The sole prop and partner can be included in a group plan IF they have at least one W2 EE listed on the DE9C.

I’ve sent an email to Covered CA and Blue Shield to clarify this.

Blue Shield Flyer Small businesses and the ACA Rev 3.2013