State Legislative/Regulatory News

Self-Insurance Institute of America, Inc.

Exclusive Reporting for the Week of April 14, 2014

April 14, 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 abrackemyre@siia.org.

Connecticut- Assessment Update
SIIA continues to urge the Connecticut Legislature to eliminate a new assessment on self-funded health plans and met with a key senator this week to reinforce industry objections.

Last Thursday, SIIA members Dave Follansbee and Rick Parrett of Diversified Group Brokerage joined SIIA Government Relations Director Adam Brackemyre for an important meeting with Senate Beth Bye, co-chair of the Joint Appropriations Committee. Businesses, health insurance plan and their respective trade associations also had representatives in this important meeting.

Strong concerns were expressed about the proposed assessment is likely preempted by ERISA and that it serves as a disincentive for employers to voluntarily provide health coverage for their workers. Senator Bye appeared to take the input seriously and advised she and her colleagues will give the matter additional consideration.

SIIA will continue to work with stakeholders in Hartford and encourages additional association members to get involved. Stay tuned for additional updates. In the meantime, if you have Connecticut clients or business partners who want to oppose this new assessment, contact Adam Brackemyre right away.

New York – Stop-Loss Legislation
SIIA is ramping up lobbying efforts to pass legislation (S. 6917) that will protect the self-insurance market in that state for groups with 51-100 employees.

As previously reported, New York currently restricts the sale of stop-loss insurance to small groups (currently defined as 2-50 employees). In accordance with the Affordable Care Act, the small group definition changes to 2-100 employees effective January 1, 2016. So without a legislative “fix” before that date, self-insurance will effectively no longer be an option.

One immediate objective is to identify current 51-100 self-insured group health plan sponsors (private employers and unions) that would be willing to participate in a grassroots advocacy campaign. Please contact Adam Brackemyre right away should you be able to assist with this effort.

SIIA’s 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 www.siia.org, or by calling 800/851-7789.