Agents: the best source.

California businesses will have significantly more power in buying health insurance for their employees after July, thanks to a new state law. The California small group health insurance reform law, known as AB 1672, was supported by responsible health insurance companies.

Under it, any business with five to 50 employees can obtain any health insurance plan sold in California regardless of what type of business it is and regardless of the age or health condition of its work force -- guaranteed.

It also means a policy can't be cancelled no matter how high a group's claims are, as long as the business pays its premiums. Additionally, it limits how much those premiums can increase up for one year to the next.

AB 1672 also places limits on the exclusions insurers can write for pre-existing conditions. Among other things, it makes it easier for a person with a health problem to go from one job to another, or for a small business to switch carriers, without losing coverage.

The law also creates a new way to buy health insurance. You can still buy insurance on the open market, and enjoy the benefit of the reforms described above. But you'll also be able to join the first "managed competition" program in the nation. AB 1672 created the Health Insurance Plan of California, know as the HIPC (pronounced, "HIP-ik").

The best source of information about health plans in this new marketplace is your insurance agent or broker. He or she is a trained professional whose job it is to know about all options available, what these options might cost, how to enroll, and most importantly, what is right for your business. It's your agent's job to listen to your needs, get you price quotes and tell you about all your options. Your agent can also help you enroll if you decide to do so, and meet with your employees to answer any questions and help them fill out forms. His or her advice and assistance is invaluable.

If you currently have health insurance, the new law doesn't mean you have to do anything differently. It just means small business and their employees have more rights. You can maintain your relationship with your agent and your insurance company just as you always have.

Likewise, because the new law makes it possible for you to get insurance when you might not have been able to before, you can talk to your agent and pick any of the products on the market.

This new health insurance marketplace has brought other changes, too. One insurance company is offering a product called "Pool Plus." It's a flexible spending account which can make insurance even more affordable by allowing premiums to be paid in before-tax dollars. It also lets employees pay out-of-pocket expenses in before-tax dollars, so it can be a highly attractive benefit.

With a flexible spending account, employees can also pay for things like contact lenses, dental care and even daycare with pre-tax dollars.

In the past flexible spending accounts, because they are somewhat complex to administer, were impractical for small businesses. But Employers Health Insurance has a product that is especially designed for small businesses. Because Employers Health has standardized forms and materials, and due to other efficiencies, it is often affordable for companies with as few as 10 employees. In fact, for most companies the tax savings will offset the fees for Pool Plus. This, too, is something your insurance agent can tell you about.

Few people would disagree with the notion that the health care industry needs change. But California isn't waiting for the federal government. A new healthcare system will become a reality in California on July 1.

Small business owners can now have a much easier time offering the employee benefits they need to attract and retain great employees, and get on with business. Ask your agent to help make the new system work for you.

Jon Drayna is Director of Media Relations, Employers Health Insurance