State Legislative/Regulatory News

Self-Insurance Institute of America, Inc.
Exclusive Reporting for the Week of February 25, 2014

February 25, 2014 — 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 202/463-8161, or via e-mail at

Oregon – Stop-Loss Legislation
Big news this week from Oregon… HB 4050 was amended and passed in a Senate Committee to repeal the state’s current prohibition on stop-loss insurance being sold to small groups. As previously reported, the legislation in its original form was intended to ensure that stop-loss insurance could continue to be sold to groups of 51-100 when the definition of small group changes in 2016.

SIIA has been actively supporting this legislative effort since the initial bill introduction.

This latest development would pave the way for not only protecting the 51-100 market size for self-insurance, but also would open up the under 50 market for self-insurance in Oregon. Given that other states have been moving to restrict self-insurance options within the small group, this is a welcome report of progress, although the legislative process continues.

The next stop for the bill is the Senate floor. If the bill is adopted with the stop loss prohibition repeal, it would have to go back to the House and passed again in its amended form.

Illinois- Group Self-Insured Workers Comp Legislation
SIIA has learned a little more about the Department of Insurance’s (DOI) effort to regulate self-funded workers compensation plans.

Reliable sources in Springfield inform SIIA that self-funded workers compensation reform is not a high priority for the DOI, whose staff met with legislators late this week, probably to discuss legislative action for this session. The date to file new legislation has already passed, which means that existing legislation would have to be amended to include the DOI’s proposal, a copy of which SIIA obtained last week.

So, this issue may or may not be taken up by the legislature; one SIIA source said he would be surprised if it was. In the meantime, SIIA is working with friends and allies to develop a political strategy to support self-funded workers compensation plans.

SIIA Legislative/Regulatory Conference
If you have not already done so, make plans to attend SIIA Legislative/Regulatory Conference scheduled for April 23-24, 2014 in Washington, DC. Conference details, including registration forms, can be accessed on-line at, or by calling 800/851-7789