State Legislative/Regulatory News

Self-Insurance Institute of America, Inc.

Exclusive Reporting for the Week of March 25, 2014

March 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

Connecticut- Stop-Loss Legislation
After a hearing featuring SIIA-organized opposition, restrictive stop-loss language was removed from Senate Bill (SB) 479.

One small portion of SB 479 was of interest to SIIA members, Section 5. New language would have increased the minimum individual attachment point to $45,000, the highest in the nation, and compelled many smaller businesses that self-insure to re-examine their health insurance options.

Last Tuesday, SIIA member Brooks Goodison and SIIA director of state government relations Adam Brackemyre testified against the new stop loss standards explaining to members of the Joint Insurance and Real Estate Committee, each requesting that Section 5 be removed from the legislation.

Aside from testifying, generating grassroots opposition was critical in this success. Brooks and SIIA members Kimberly Young and Rob Melillo encouraged employers and brokers to contact their legislators, urging them to oppose Section 5 too.

All of this work was successful. Last Thursday, SIIA was advised that Section 5 was removed from SB 479 by the Joint Insurance and Real Estate Committee.

Connecticut- Stop-Loss Bulletin
The Connecticut Department of Insurance has issued a new stop-loss bulletin.

The bulletin, available here, proposes that stop-loss coverage renewed on or after July 1st, 2014 meet the NAIC model act standards.

Since the bulletin is does not have an open comment period, like proposed regulations, SIIA plans to meet with the Department of Insurance, probably after the legislature adjourns in May.

Minnesota- Stop-Loss legislation
SIIA has been informed that the Minnesota stop-loss legislation, both House and Senate versions, will be removed from consideration.

The legislation would have:
• Required a minimum attachment points of $6,500 or twice the individual maximum out-of-pocket expense, whichever is greater
• Required an aggregate attachment point that is lower than 110 percent of expected claims
• Prohibited underwriting using individual health applications.
Although the bill sponsors may be interested in stop-loss legislation in the future, there were industry concerns with the current language in SF 2583 and HF 3056.

SIIA appreciates the sponsors’ willingness to build stakeholder support and looks forward to working with all stakeholders on future legislative and regulatory endeavors.

New York- Captive Taxes and the State Budget
SIIA continues to address the captive tax issue in New York’s proposed budget.

As SIIA members know, the governor’s budget proposes to merge sections of tax code and change the tax treatment of captives. Budget negotiations are ongoing and, at this point, it is not clear what the final tax package will resemble. SIIA has received conflicting information from trusted sources in Albany whether the Senate has adopted legislative language that would fix the problem.

SIIA will keep you informed. The New York State fiscal year begins on April 1st, so we should know shortly.

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.