Stop-Loss Insurance Bill Advances

 

SB 1431, by Senator Kevin De Leon, passed the Assembly on May 31st with a vote of 24-13.

This bill, sponsored by the Department of Insurance, would impose certain requirements on stop-loss insurance policies used by small employers with less than 50 employees that self-insure for employee health benefits.  Specifically, SB 1431 would require stop-loss carriers to offer coverage to all employees and dependents of a small employer.  The bill would also prohibit the stop-loss carrier from excluding any employee or dependent based on actual or expected health factors.  In addition, recent amendments would exempt Multiple Employer Welfare Arrangements from any provisions of the bill.  Recent amendments were also taken to remove a provision of the bill that set a dollar amount for attachment rates.  The reason the provision was removed was to allow interested parties to continue negotiations on the specific number.

During the discussion on the Floor, the attachment rate was an issue of contention.  The bill was passed under the condition that the author works with opponents to reach a consensus number.  The Department was initially at below $95,000, while opponents were asking for more along the lines of $30,000.  It is unclear whether a consensus will be able to be reached.

Advocacy

Products & Services

Networking

Education