Filed Under:Markets, Employee Benefits

S.B. 1431: California Senate Passes Small Group Stop-Loss Bill

Dave Jones wants to regulate small-group stop-loss attachment points. (AP Photo/Matt York)
Dave Jones wants to regulate small-group stop-loss attachment points. (AP Photo/Matt York)

The California Senate voted 24-13 Thursday to pass S.B. 1431, a bill that could regulate carriers ability to sell stop-loss arrangements -- insurance for self-insured health plans -- to employers with 2 to 50 lives.

The California Assembly now must decide which committees will have jurisdiction over consideration of the bill there.

The bill is based in part on a model developed by the National Association of Insurance Commissioners, Kansas City, Mo., according to theCalifornia Senate analysts.

The Patient Protection and Affordable Care Act of 2010 (PPACA) exempts self-insured plans from many of the new PPACA plan rules that have already started to take effect or are set to take effect in 2014. Both defenders and critics of PPACA have suggested that some small employers might try to avoid PPACA requirements by replacing fully insured plans with a combination of self-insured plans and stop-loss arrangements.

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Nichole Morford

Nichole Morford
Managing Editor

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