Protecting Stop-Loss Insurance for Employer Health Plans
This act clarifies that stop-loss insurance, which employers purchase to protect against high healthcare costs for employees, is not considered standard health insurance. This helps employers, especially smaller ones, better manage financial risks when self-funding employee health benefits. This could support the continuation or expansion of employer-provided health benefits.
Key points
Stop-loss insurance, which protects companies from unexpectedly high employee healthcare costs, is no longer classified as health insurance.
This change makes it easier for companies, especially small ones, to self-fund employee health plans, potentially impacting the stability of offered benefits.
The act limits states' ability to regulate stop-loss insurance, ensuring its availability to employers nationwide.
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