Filed Under:Health Insurance, Individual Health

Self-insurance battle continues at NAIC fall meeting

Supporters say micro-stop-loss plans could lead to adverse selection. (AP Photo/Pablo Martinez Monsivais)
Supporters say micro-stop-loss plans could lead to adverse selection. (AP Photo/Pablo Martinez Monsivais)

A panel at the National Association of Insurance Commissioners (NAIC) today decided against putting new curbs on use of small group health insurance stop-loss arrangements.

The panel -- the ERISA Working Group, an arm of the NAIC's Health Insurance and Managed Care Committee -- rejected a stop-loss motion during a session in Washington, at the NAIC's fall meeting, according to an NAIC session summary.

Only 3 states -- Minnesota, New Hampshire and Vermont -- have adopted the entire 1995 model; 18 other states have adopted parts of the model.

The Patient Protection and Affordable Care Act of 2010 (PPACA) exempts self-insured plans from many of the rules that apply to insured group plans.  Some observers have argued that letting small employers use a combination of self-insurance and stop-loss arrangements with very low deductibles could help them evade the new PPACA rules.

If small employers self-insure, that could deprive the workers in those plans of protection from much-needed PPACA consumer protection provisions, PPACA supporters say.

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Nichole Morford

Nichole Morford
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