SIIA outlines regulatory issues affecting self-insurance

State Assessments A recent survey by the Kaiser Foundation showed that 54% of employers now self-insure their health plans against 43% who purchase conventional health plans. With State high-risk residual pools currently showing shortfalls of $300m, a figure that is expected to rise to $1bn within a few years, some states are now considering placing state assessments on stop-loss premiums in order to raise funds to help address these deficits. "State Assessments have emerged as the the greatest threat since the Clinton Health Plan or the Patients Bill of Rights." Mr Pantos said that SIIA opposed the introduction of stop-loss assessments by any state as stop-loss insurance is not health insurance and does not provide benefits to employees as it protects the trust. Secondly it could be unfair to focus on stop-loss as some larger employees who did not purchase stop-loss would be exempt. Mr Pantos went on to say that SIIA had so far successfully campaigned against stop-loss assessments in Georgia and Texas. Association Health Plans A bill has been passed by the House to allow small employers to purchase health insurance from self-insured trade or professional associations but that passage by the Senate was predicted to be an "uphill struggle". SIIA believes that passing a bill would help more people become insured as associations would have the same buying power as larger organisations. Terrorism Risk Insurance Act (TRIA) This Act which aims to help employers from losses acts of terrorism that would otherwise not be insurable is due to come to the end at the end of this year leaving many employers facing the prospect of having no insurance cover for an act of terrorism should their employees be injured in such an act. Congress is considering an extension but only with a $500m event trigger compared to $50m which the industry is requesting. Liability Risk Retention Act Mr Pantos said that SIIA was supporting an extention to the Act that would allow Risk Retention Groups to accept all property and casualty risks including excess Workers Compensation.