No, the Affordable Care Act (ACA, Obama Care) and California law specifically prohibit insurance companies from asking medical history questions for small business employers with 1 to 100 employees in California. So, employees and dependents with serious medical conditions can’t be denied coverage. If your company has more than 100 employees then the insurance companies can ask about pre-existing medical conditions and can raise the rates for the entire company. It’s blatantly unfair, but those are the rules.