Tag: stop-loss insurance

DOL Supports State Laws Barring Low Stop-loss Attachment Points

State laws barring stop-loss policies with low attachment points are not preempted by ERISA, the U.S. Department of Labor said in Technical Release 2014-01. Ten states have passed such laws, many of them since the advent of the Affordable Care Act. When small groups self-insure, they are subject to proportionately larger impacts from particular expensive claims, have […]

Calif. Law Restricting Stop-loss Approved

Legislation designed to make it more difficult for smaller employers to self-insure by restricting their ability to obtain stop-loss insurance with very low attachment points was signed into law on Oct. 1 by California Gov. Jerry Brown. S.B. 161, which takes effect Jan. 1, 2014, will prohibit stop-loss insurers in California from issuing policies with specific […]

Stop-loss Restrictions Advance in Several States

Fast-moving events have advanced state-level proposals aimed at regulating stop-loss, which would make it more expensive for small employers to self-insure health benefits, and put power over self-funding in the hands of state insurance commissioners. Utah law now requires stop-loss insurers to cover incurred and unpaid claims if a small employer plan terminates — an unprecedented requirement. […]

Stop-Loss Insurers Would Not Be Health Exchange ‘Navigators’ Under HHS Proposal

The health reform law provides that entities called “Navigators” will assist consumers and small businesses in researching health insurance exchanges — but stop-loss insurers for self-funded health plans won’t be one of them. Those insurers, as well as individuals and other entities with too close a financial relationship to such insurers, would be excluded from […]

Texas Excludes Self-funded Plans From ‘Insurer’ Definition, Exposing S-L Policies to State Taxes

In a May 18 ruling, the Texas Supreme Court compelled a stop-loss insurer to pay a direct premium tax on stop-loss policies sold to self-funded health plans. Stop-loss insurance written in Texas for self-funded plans is not “reinsurance” and thus must pay state levies and follow state insurance rules, the court held. American National, a […]