Rhode Island bill would restrict stop-loss insurance sales
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The Rhode Island House of Representatives met Wednesday to consider legislation that would significantly restrict the sale of stop-loss insurance to employers that self-insure their employee health benefit plans.
Key provisions of H.B. 5459 would establish minimum attachment points for specific stop-loss insurance at $20,000 and minimum aggregate attachment points at 120% of expected claims.
When introduced, H.B. 5459 had set specific limits at $20,000 and aggregate limits at 130% of expected claims.
In addition, the measure would give the Rhode Island insurance commissioner the authority to change these attachment point requirements “as necessary,” according to bill language.
The Self Insurance Institute of America has submitted letters opposing the measure to members of the Rhode Island House Committee on Corporations, which has recommended its passage.
Rhode Island is one of five states to introduce legislation regulating the sales of stop-loss insurance this year.
Rhode Island’s bill had been shelved in response to opposition by businesses and industry stakeholders, but it was resurrected April 23, according to legislative history.
Similar legislation has been shelved in Minnesota.
However, stop-loss legislation has been enacted in Utah and remains pending in California and Colorado, where it passed the state House on April 22.
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