The Coronavirus has brought tough times upon businesses here in the United States. Many businesses are already struggling to pay their employees and their employees' health insurance benefits. The State of California is attempting to alleviate some of those pains by extending the mandatory forgiveness period to 60 days.
“Now is the time to come together to help consumers weather this unprecedented period of uncertainty, and that includes helping policyholders maintain their insurance coverage if they are unable to pay their premiums,” said Commissioner Lara. “We must do everything we can to ensure that consumers and their families maintain insurance coverage protection during this public health pandemic.”
Health Insurance carriers already have a 30 day premium forgiveness implemented. The idea is that an insurance company should not cancel a business's health insurance without proper cause. The employees are depending on that policy to be in force and California makes sure no business is cancelled due to a single missed payment.
Now businesses have been extended another 30 days. Because businesses shut down in March, many April payments have not been received. This April payment is due April 1st but can now be paid as late as the end of May!
Learn more at HealthyMarks.com
I hope this small effort to help businesses works well. The payroll loans and health insurance forgiveness is an attempt to push the problem down the road. Let's hope we can tackle it permanently after this virus and quarantine is complete.