(

a) The premium rate for a small employer health benefit plan issued, amended, or renewed on or after January 1, 2014, shall vary with respect to the particular coverage involved only by the following:

(1) Age, pursuant to the age bands established by the United States Secretary of Health and Human Services and the age rating curve established by the Centers for Medicare and Medicaid Services pursuant to

Section 2701(a)(3) of the federal Public Health Service Act (42 U.S.C.

Sec. 300gg(a)(3)). Rates based on age shall be determined using the individual’s age as of the date of the plan issuance or renewal, as applicable, and shall not vary by more than three to one for like individuals of different age who are years of age or older as described in federal regulations adopted pursuant to

Section 2701(a)(3) of the federal Public Health Service Act (42 U.S.C.

Sec. 300gg(a)(3)). (2) (

A) Geographic region. The geographic regions for purposes of rating shall be the following: (

i) Region shall consist of the Counties of Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, and Yuba. (ii) Region shall consist of the Counties of Marin, Napa, Solano, and Sonoma. (iii) Region shall consist of the Counties of El Dorado, Placer, Sacramento, and Yolo. (iv) Region shall consist of the City and County of San Francisco. (

v) Region shall consist of the County of Contra Costa. (vi) Region shall consist of the County of Alameda. (vii) Region shall consist of the County of Santa Clara. (viii) Region shall consist of the County of San Mateo. (ix) Region shall consist of the Counties of Monterey, San Benito, and Santa Cruz. (

x) Region shall consist of the Counties of Mariposa, Merced, San Joaquin, Stanislaus, and Tulare. (xi) Region shall consist of the Counties of Fresno, Kings, and Madera. (xii) Region shall consist of the Counties of San Luis Obispo, Santa Barbara, and Ventura. (xiii) Region shall consist of the Counties of Imperial, Inyo, and Mono. (xiv) Region shall consist of the County of Kern. (xv) Region shall consist of the ZIP Codes in the County of Los Angeles starting with to 912, inclusive, 915, 917, 918, and 935. (xvi) Region shall consist of the ZIP Codes in the County of Los Angeles other than those identified in clause (xv). (xvii) Region shall consist of the Counties of Riverside and San Bernardino. (xviii) Region shall consist of the County of Orange. (xix) Region shall consist of the County of San Diego. (

B) No later than June 1, 2017, the department, in collaboration with the Exchange and the Department of Managed Health Care, shall review the geographic rating regions specified in this paragraph and the impacts of those regions on the health care coverage market in California, and submit a report to the appropriate policy committees of the Legislature. The requirement for submitting a report imposed under this subparagraph is inoperative June 1, 2021, pursuant to

Section 10231.5 of the Government Code.

(3) Whether the health benefit plan covers an individual or family, as described in PPACA. (

b) The rate for a health benefit plan subject to this

section shall not vary by any factor not described in this section. (

c) The total premium charged to a small employer pursuant to this

section shall be determined by summing the premiums of covered employees and dependents in accordance with

Section 147.102(c)(1) of Title of the Code of Federal Regulations. (

d) The rating period for rates subject to this

section shall be no less than months from the date of issuance or renewal of the health benefit plan.