Benefits April 8, 2011
Brown Pens CA Health Reform Conforming Bill
April 8, 2011 (PLANSPONSOR.com) – A bill signed into law by California Governor Jerry Brown allows parents to insure their adult children up to age 26 without being taxed on the coverage.
Reported by PLANSPONSOR staff
AB 36, which Golden State lawmakers approved last month, brings California state tax law in line with federal health reform law (see CA Bill Makes Adult Children’s Health Costs Tax Exempt).
Business Insurance explains that prior to the passage of the conformity legislation, California law had set a five-part test, all of which had to be satisfied for the coverage to be excluded from employees’ taxable income.
Lawmakers in other states, including Arkansas, Kentucky, Minnesota and South Carolina (see SC Lawmakers Approve Adult Child Coverage Tax Law), in recent weeks have passed conformity bills. Also this year, conformity measures were approved by lawmakers in Arizona, Maine and Oregon, according to Business Insurance.