Covered California Implements ACH Policy Changes

Effective immediately, Covered California for Small Business (CCSB) will enforce its policy on payments that have been returned unpaid and the number of times a policy can be reinstated after termination for non-payment.

Returned Payment Policy: The ability to enter one time or recurring ACH payments through MyCCSB.com will be restricted for a 12-month span (365 days) when two returned payments have occurred on the account within a six-month span (183 calendar days).

• After the first occurrence, a notice will be sent to the employer's mailing address on file, providing them with the reason for the returned payment.
• After the second occurrence, a notice will be sent to the employer's mailing address on file, providing them with the reason for the returned payment and notice that all payments must be made with a cashier’s check or money order for a period of 12 months beginning the first of the month following the last paid through date. Payment made with business or personal checks will be returned to the sender.
• MyCCSB.com will automatically reinstate the ACH functionality after 365 calendar days from the last returned payment.

NOTE: Notices will be sent out based on the mode of delivery selected by the employer. For example: If the employer is opted into paperless delivery, they will only receive an email notice with their agent CC'd if one is attached. If they are not opted into paperless delivery, notices will be physically mailed to the employer only.

Policy Reinstatement After Termination for Non-Payment: A qualified employer terminated due to non-payment of premium may only reinstate once during the 12-month period beginning at the time of their original effective date or from their most recent renewal date, whichever is more recent. Exceptions will be considered on a case-by-case basis.

The Small Business Service Center is available to help with questions at (855) 777-6782.