CA SB1375

Removes sole proprietors, partners of a partnership, and their spouses from the definition of "eligible employee" for small employer health insurance coverage purposes.

Prohibits employer group health plans from being issued, marketed, or sold to sole proprietorships or partnerships without employees; requires only individual health plans be sold to entities without employees.

Effective January 1, 2019, sole proprietors and their spouses, and partners and their spouses, are not counted as employees when determining if an employer qualifies as a small employer with one employee.

Applies the same restrictions to both health care service plans under the Knox-Keene Act and health insurance policies under Insurance Code provisions governing small employer groups.

Establishes that willful violations of these requirements constitute crimes subject to existing penalties for health care service plan violations.