SIIA Legislation Passes U.S. House of Representatives

After several years of broad SIIA advocacy efforts, the U.S. House of Representatives passed H.R. 1304, the Self-Insurance Protection Act (SIPA), earlier this month by a vote of 400 to 16.

Sponsored by Dr. Phil Roe (R-TN) and promoted by SIIA and its members across the country, SIPA ensures that small- and mid-sized private sector employers, as well as smaller Taft-Hartley Plans and public sector entities, are able to continue to provide quality health benefits to their workers and members through self-insured group health plans. SIPA accomplishes this by clarifying existing law to ensure that federal regulators cannot re-define stop-loss insurance as traditional "health insurance" under the law. Such a designation would effectively force these self-insured entities to discontinue their plans. This regulatory threat surfaced during the prior administration and, while not a likely development given the current administration, SIIA believes it is important to codify this protection now to head off any similar regulatory threats in the future.

Stop-loss insurance is utilized by most private and public employers with self-insured plans, along with self-insured Taft-Hartley Plans, to provide a financial backstop to reimburse the employer or the plan for catastrophic losses and to protect the plan and plan sponsor from financial insolvency. Unlike health insurance, stop-loss insurance does not cover individuals, nor does stop-loss insurance pay health care providers.

The Self-Insurance Protection Act now moves over to the Senate where SIIA will continue its outreach and support activities.


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