California's Health Insurance Act of 2003, also known as Senate Bill 2 (SB 2), was signed by Governor Gray Davis in October 2003. This "pay or play" law requires California employers to pay a fee to the state to provide health insurance unless the employer provides coverage directly. Participation requirements vary with firm size; the smallest firms are exempt.

To assist those interested in SB 2 issues, the California HealthCare Foundation (CHCF) has compiled two fact sheets and resources, available through the link below. In accordance with CHCF's standard policy, the California HealthCare Foundation did not take a position on the legislation.

Early estimates indicate that as many as one million uninsured Californians could be covered under the plan. At the same time, the new legislation imposes significant new costs on businesses not offering health insurance; figuring out the costs involved and ways to control them is imperative, particularly in an era of soaring premiums.

• An overview and basic facts of the SB 2 legislation including who will be covered; how the process will work; how SB 2 will affect the uninsured; how firms will be affected; and legal issues and challenges;
• Updates on SB 2-related news coverage;
• Links to the final text of the legislation and legislative analyses of SB2 and a related measure, AB 1528;
• A fact sheet on ERISA Implications for SB2; and
• Resources on SB 2 from organizations such as the UCLA Center for Health Policy Research, The Kaiser Family Foundation, and others. CHCF's SB 2 resource page will soon feature a history of employer mandates; cost scenarios and how they might affect firms; results from public opinion polling on SB 2; and more.