The California Health Insurance Act of 2003 (also known as Senate Bill 2, or SB 2) creates a state health insurance coverage program for eligible workers at medium and large firms. Beginning in 2006, employers with 200 or more employees will be required to show evidence of coverage, or pay a fee to enroll their employees and the uncovered dependents into this program, the State Health Purchasing Fund, to be created by the California Managed Risk Medical Insurance Board (MRMIB). Beginning in 2007, employers with 50 to 199 employees will be required to provide coverage or pay the program fee for their eligible employees.

The California HealthCare Foundation (CHCF) commissioned RAND Corporation and the Institute for Health Policy Solutions to develop a report on the market context and demographic profile of California employers and employees to be affected by SB 2 if these requirements take effect. The legislation must first survive a public referendum scheduled for November 2004.

The snapshot report, SB 2: Effects on Employers and Employees, provides an overview of:

• Current characteristics and coverage practices of private sector employers in California (such firms employ about 80% of SB 2-eligible workers); and
• Workers and their dependents who are affected and how the measure is likely to change their health insurance status (both private and public sector workers and dependents are included in the analysis).