Yes. Employees who live outside of California can be covered on your group medical insurance plan, however, they can only enroll in a PPO plan. The out-of-state employee have access to providers who are in- and out-of-network in their state. Out-of-State employees with small businesses that offer Anthem Blue Cross of California or Blue Shield of California medical insurance plans will use the PPO network of the Blue Cross Blue Shield Association PPO network. Other insurance companies such as UnitedHealth Care and Aetna have national networks of providers. The out-of-state employees will have the exact same benefits as the employees in California.
No California insurance company offers HMO plans to out-of-state employees of small businesses. HMO’s require specific contracts with medical groups and the payment is entirely different from PPOs. It’s too difficult for insurance companies to set up HMO contracts in every state outside of California, so they just offer PPO plans.