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Breaking: Biocom California Secures Major Victory with Signing of SB 718

  • 2021-10-27T17:00:00.000+0000
  • Author: Jimmy Jackson

This year Biocom California secured one of the most significant policy victories on behalf of our members in its history. On October 8, Governor Gavin Newsom signed SB 718 into law, which will allow health care trusts which meet a rigorous set of quality standards serving life science companies to continue to offer that product.

Legislation passed in 2018 resulted in a ruling by the California Department of Managed Health care that determined trusts such as the Biocom California Beyond Benefits health trust could no longer offer large employer health rates to companies of less than 100 employees. Biocom California first attempted to resolve this administratively, but when it became clear regulators felt their hands were tied, we went to the legislature to seek a solution for our industry members.

Senator Patricia Bates agreed to author SB 718 this year to allow life science health trusts meeting stringent criteria to continue offering this product because of the highly competitive nature of the ongoing search for talent that occurs in the industry. Ultimately, the bill advanced through the Legislature with no opposition.

There are some regulatory and administrative details still being worked out, but Biocom California is pleased life science companies will continue to have access to the high-quality health care companies have been able to offer to their employees in the past.