A push to limit employers’ access to stop-loss insurance has picked up steam, amounting to one of the biggest battles facing the industry in years.
Stop-loss insurance is state-regulated, and in the last year the topic has come up in legislatures across the country. By the end of 2013, four states had passed laws restricting stop-loss in one way or another.
As part of that effort, the Self-Insurance Protection Act that was introduced late last year by Rep. Bill Cassidy, R-La., and Sen. Lamar Alexander, R-Tenn. The legislation seeks to clarify existing law to ensure that federal regulators cannot re-define stop-loss insurance as traditional health insurance. Such a designation, they say, could force many self-insured entities that retain stop-loss insurance to discontinue their health plans.
If passed by Congress, the law would merely amend the Employee Retirement Income Security Act to exclude from the definition of health insurance coverage certain medical stop-loss insurance.