- The Act mandates that all employers with more than 20 workers must either provide health care for their workers or pay into a state fund providing health insurance for the uninsured. The fund is called the State Health Purchasing Program and is run by the Managed Risk Medical Insurance Board.
- The Act was signed into law by the governor of California on Oct. 5, 2003. Large employers--defined by the IRS as employers with more than 200 employees--had to cover their workers by Jan. 1, 2006. and medium employers--defined by the IRS as having less than 199 employees but more than 20--had to to cover their workers by Jan.1, 2007. Employers with less than 20 workers do not have to cover their workers.
- Employers may not collect a fee of greater than 20 percent of the cost of the health insurance from their employees. An October 2003 University of Kentucky study estimates that the Act will cost California employers approximately $11.4 billion.
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