Section 1357.610 Of Article 3.17. Grandfathered Small Employer Plans From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 3.17.
1357.610
. (a) No plan shall be required by the provisions of this
article:
(1) To offer coverage under a small employer's health care service
plan contract to an otherwise eligible employee or dependent, when
the eligible employee or dependent does not work or reside within the
plan's approved service area, except as provided in Chapter 7
(commencing with Section 3750) of Part 1 of Division 9 of the Family
Code.
(2) To offer coverage under a small employer's health care service
plan contract to an eligible employee, as defined in paragraph (2)
of subdivision (b) of Section 1357.600, who within 12 months of
application for coverage terminated from a small employer health care
service plan contract offered by the plan.
(b) Nothing in this article shall be construed to limit the
director's authority to develop and implement a plan of
rehabilitation for a health care service plan whose financial
viability or organizational and administrative capacity has become
impaired.