Bill > HR2571

This bill amends the Employee Retirement Income Security Act (ERISA) to address how self-funded health insurance plans can obtain stop-loss insurance. Stop-loss insurance is a financial protection tool that helps employers cover unexpectedly high medical claims beyond a predetermined threshold. The bill specifically excludes stop-loss insurance from the definition of health insurance coverage, which means such policies will not be regulated the same way traditional health insurance is. Currently, employers can choose to self-fund their health benefit plans, paying for employee medical expenses directly from company assets instead of purchasing fully-insured coverage from an insurance company. The bill clarifies that stop-loss policies, which protect employers from catastrophic losses, do not directly insure employees or pay healthcare providers. Additionally, the bill preempts state laws that might prevent employers from obtaining stop-loss insurance, effectively creating a federal standard that allows both small and large employers to protect themselves against unexpected high-cost medical claims. This legislation aims to provide more flexibility for employers in managing the financial risks associated with providing health benefits to their employees.

Education

https://www.congress.gov/bill/119th-congress/house-bill/2571/all-info