Requires 90 days' notice of cancellation or nonrenewal of stop loss insurance for small employer health benefits plans.
Impact
The requirement for 90 days' notice is expected to significantly impact state laws regarding the regulation of stop loss insurance within the framework established by existing legislation (P.L.1992, c.162). This measure aims to foster a more predictable environment for small employers, potentially reducing uncertainty in their health insurance costs and helping them manage their finances more effectively. This change could also influence how insurers structure their policies, potentially making them more responsive to the needs of small businesses.
Summary
Senate Bill S1157, sponsored by Senator Raj Mukherji, aims to enhance protections for small employers concerning their health benefits plans by mandating that insurers provide a minimum of 90 days' written notice before canceling or not renewing stop loss or excess risk insurance policies. This type of insurance is crucial for small businesses, as it helps protect them against catastrophic health care costs that may arise unexpectedly. The bill is intended to stabilize the insurance landscape for small employers, allowing them sufficient time to seek alternative coverage options if necessary.
Contention
While the bill appears to have supportive intentions, there may be contending viewpoints regarding its implementation. Insurers might argue that such a requirement could lead to higher premiums or administrative burdens, as they would need to adapt their internal processes to accommodate the longer notice period. There remains a concern about the potential for complacency among insurers, who might feel less encouraged to maintain competitive pricing if then have to extend coverage policies for longer periods. Discussions during legislative sessions could reveal differing opinions on these trade-offs.
Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.
Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.
Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.
Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.