California Bill That Would Stifle Self-Insured Health Plans

The Self-Insurance Institute of America, Inc. (SIIA) communicated its opposition to a state bill that would threaten the employer-sponsored health benefit plans of thousands of California employees and their dependents particularly among small-to medium-sized businesses.

The proposed bill, SB 161, would restrict employers’ use of stop-loss insurance to protect plans against catastrophic losses and includes special restrictions on self-insured employers for groups of 50 or less. An identical bill was shelved during the 2012 session for lack of support. The bill is scheduled for a hearing Wednesday, May 1, at 1:30 p.m. before the Senate Health Care Committee in Sacramento.

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