Bill > SB01001

This bill aims to modify regulations surrounding stop loss insurance, which is a type of coverage that protects self-insured businesses from extremely high medical claims. The legislation proposes two main changes: first, it will increase the attachment point for stop loss insurance policies for small self-insured businesses. The attachment point is the dollar amount at which the stop loss insurance begins to cover medical claims, effectively raising the threshold of financial risk for these businesses. Second, the bill requires the Insurance Commissioner to conduct and report on a feasibility study regarding the implementation of a minimum loss ratio and additional consumer protections for stop loss insurance. A minimum loss ratio typically refers to the percentage of premium dollars that an insurance company must spend on actual medical claims and healthcare services, which helps ensure that insurance companies are providing value to their customers. By requiring this report, the bill seeks to explore ways to potentially enhance consumer safeguards in the stop loss insurance market, potentially leading to future regulatory improvements that could benefit small businesses and their employees.

Business and Industry

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01001&which_year=2025