The Self-Insurance Protection Act allows employers who self-fund health benefits to use stop-loss insurance without it being classified as health insurance. This helps employers manage unexpected health costs more effectively.
1. This bill changes the definition of health insurance to exclude certain stop-loss insurance. 2. Stop-loss insurance helps employers manage financial risks from unexpected health claims. 3. Employers can purchase this insurance to protect their funds when they self-insure health benefits. 4. The bill ensures that both small and large employers can access stop-loss insurance. 5. It also allows federal law to override state laws that limit this type of insurance.
This bill affects employers who provide health benefits to their employees, especially those who self-fund their health plans.