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Committee advances changes to health stop‑loss rules for very small employers, including disclosure form deadline change
Summary
Senate Bill 16, revised in committee, adds consumer protections for stop‑loss insurance marketed to very small employers, directs the insurance commissioner to adopt a disclosure form, and the committee moved the disclosure promulgation date to Jan. 1, 2026.
The House Insurance Committee on May 28 adopted amendments and reported Senate Bill 16, a measure addressing health stop‑loss insurance and protections for small employers, particularly those with fewer than five employees.
Senate Bill 16, originally filed to stabilize the health insurance market, was reworked and presented to the committee with amendment set 3,515. The amendments add policy provisions specific to stop‑loss policies for employers with fewer than five employees, authorize the commissioner of insurance to develop a standardized health stop‑loss policy disclosure form under the Administrative Procedure Act, require guaranteed rates for at least 12 months in contract terms, set attachment points and alignment of plan benefit limitations with the small employer's health plan, and direct payment of stop‑loss claims incurred during the contract period — including payment within 48 months after contract expiration.
Sponsor remarks noted the amendments also narrowed a lasering prohibition so it applies only to plans issued to employers with less than five employees. National Association of Benefits and Insurance Professionals representatives Christy Copeland and Casey Carlock testified in support. Frank (Department of Insurance) told the committee the department needed more time to promulgate the disclosure form under APA and requested changing the department’s promulgation date from November 1 to January 1, 2026; Representative Bamberg moved that change and the committee adopted the amendment to set the date to Jan. 1, 2026.
After adopting the amendments, Representative Bamberg moved that Senate Bill 16 be reported with amendments; there was no objection and the bill was reported to the House floor.
