Insurance Code section 742.40

(a)

A multiple employer welfare arrangement shall offer health care coverage benefits to any new eligible person and his or her dependents under terms and conditions no less favorable to those offered to their employers’ existing employees and their dependents, if the newly eligible person had health care benefit coverage with either the same or a different multiple employer welfare arrangement within 31 days. The new coverage shall comply with existing eligibility rules of the multiple employer welfare arrangement.

(b)

A multiple employer welfare arrangement shall comply with the requirements set forth in Section 10198.7 and 10198.9.

(c)

Notwithstanding any other provision of law, commencing January 1, 2014, a multiple employer welfare arrangement shall not offer, market, represent, or sell any product, contract, or discount arrangement as minimum essential coverage or as compliant with the essential health benefits requirement under the federal Patient Protection and Affordable Care Act, unless it meets the applicable requirements under that act.

Source: Section 742.40, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=INS§ionNum=742.­40.­ (updated Jan. 1, 2013; accessed Jun. 23, 2025).

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Verified:
Jun. 23, 2025

§ 742.40's source at ca​.gov