Resolution on Stop-Loss Insurance

Resolution on Stop-Loss Insurance

Summary

This Resolution encourages state legislators not to support legislation or regulation which would impose arbitrary limits on stop-loss coverages issued to self-funded plans. By guarding against such legislation, the preservation of a free-market, voluntary employer-based health benefit system is maintained.

Model Resolution

WHEREAS, one of five, or 51 million Americans, are enrolled in self-funded health benefit plans, and

WHEREAS, three of four self-funded employers purchase stop-loss coverage for their health benefit plans, and these plans protect consumers by paying in excess of $100 billion in health benefits to employees and their families, and

WHEREAS, one of three small business establishments with fewer than 100 employees self-fund their health benefit plans, which are covered under the Employee Retirement Income Security Act (ERISA), and

WHEREAS, impairment of a free-market, voluntary employer-based health benefit system would potentially result in higher benefit plan costs for employers and higher costs and reduced coverage for employees and their families, and

NOW THEREFORE BE IT RESOLVED, that the state of {insert state} encourages state legislators not to support state legislation or regulations that would hurt employees and their families by imposing arbitrary limits on stop-loss coverages issued to self-funded plans, and

BE IT FURTHER RESOLVED, that the state of {insert state} believes in the preservation of a free-market, voluntary employer-based health benefit system in which employers prudently choose to self-fund health benefits for their employees and their families at financially viable risk retention levels.

 

Reapproved by ALEC Board of Directors on January 28, 2013

Keyword Tags: Private Health Insurance Reform