An Act Concerning Consumer Protections For Certain Health Insurance Plans.
Impact
The introduction of SB00815 is expected to significantly impact the health insurance landscape in the state by imposing stricter requirements on stop-loss insurance plans. By mandating that these policies cover essential health benefits, the bill intends to protect consumers by preventing insurance companies from offering less comprehensive plans that may leave employees exposed to significant medical costs. The bill also aims to create a more equitable environment for self-funded employers, ensuring they cannot bypass mandated coverage through inadequate stop-loss policies.
Summary
SB00815, titled 'An Act Concerning Consumer Protections For Certain Health Insurance Plans,' is a legislative measure aimed at enhancing the consumer protections associated with stop-loss insurance policies used in self-funded employee health benefit plans. The bill proposes to amend existing statutes to ensure that any stop-loss insurance must cover essential health benefits as defined in the Patient Protection and Affordable Care Act, as well as any group state-mandated coverage requirements. Additionally, it sets specific financial thresholds for attachment points in these policies, ensuring that companies offering such insurance maintain a certain level of financial responsibility.
Contention
While the bill has received support from advocates of consumer health protections, it may face opposition from insurance providers and some employer groups who argue that the increased regulation could lead to higher premiums and less flexibility in managing their health care expenses. The proposed attachment points might be seen as a financial burden for smaller businesses that self-fund their health plans, creating a point of contention in the broader debate on health care costs and business viability. As discussions around this bill progress, stakeholders from various sectors will need to navigate these competing interests.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.