Exclusive Reporting for the Week of June 29, 2015

June 29, 2015 — This is your weekly update of state legislative/regulatory developments affecting companies involved in the self-insurance/alternative risk transfer marketplace. Should you have any questions on information provided in these reports and/or would like to alert SIIA to new state legislative/regulatory activity (health care, workers’ compensation and/or captive insurance matters) we may have missed, please contact Adam Brackemyre, Director of State Government Relations directly at 202/595-0641, or via e-mail at abrackemyre@siia.org.

 

New York State- Second Stop Loss Legislation Passes in Final Week of Session
The New York legislature adjourned last week, passing a second stop loss bill, A.8300/S.6004.

 

This bill effectively amends recently-passed legislation, A.8134-A/S.5928-A, by permitting plan sponsors to renew stop loss contracts issued to groups of 51-100 on or before January 1, 2015 for a period of up to two years.

 

This legislation was carefully negotiated among the governor’s office, Assembly and Senate during the last week of session. As previously reported, the governor’s office hinted that it would veto legislation that would have preserved greater employer and union health plan choice.

 

There is a stop loss study in A.8300/S.6004 that, driven by another subtle veto threat, will be revisited early next year. After the governor’s office voiced additional concerns last week, the legislature and governor’s office agreed to pass the current legislation and address when the legislature meets next year.

 

As reported last week, SIIA has already begun contingency planning to determine a possible strategy for the next legislative session to permanently protect the 51-100 market segment.

 

If you have any questions, please contact Adam Brackemyre at abrackemyre@siia.org.

 

Maryland- Draft Small Employer Stop Loss Disclosure Released
Pursuant to new Maryland law, the Maryland Insurance Administration has released a draft small employer stop loss disclosure form.

 

Under the new law, stop loss carriers must disclose:

  • The total costs of the policy or contract
  • The dates on which the policy or contract takes effect and terminates
  • Provisions for renewing the policy or contract
  • The aggregate attachment point and the specific attachment point for the policy or contract
  • Any limitations on coverage

The open comment period closes on July 2nd. SIIA will be filing a comment letter.