While the health care repeal and replace continues to bounce around on the Congressional floor, so does the less talked about Self-Insurance Protection Act (SIPA) bill.
A group based out of South Carolina is seeking congressional support from a new presidential administration as it proposes the third version of the SIPA bill. This bill would exclude stop-loss insurance from the federal definition of health insurance, helping smaller businesses capitalize on self-funding options.
Since the Affordable Care Act, providing self-insured plans has been an option for smaller businesses. With the SIPA bill, this would still remain an option for those businesses, even if the ACA is repealed and replaced.
Allison Bell explains the benefits small businesses would receive from the SIPA bill:
“The SIPA bill could help employers with small self-insured plans get stop-loss insurance from entities other than major medical insurance providers, by blocking state efforts to apply major medical insurance rules to small stop-loss arrangements.”
However, there are also critics speaking up against this bill, saying that self-insured options hurt the market for fully insured group health coverage. Small businesses have been a monopoly market for fully insured, and the SIPA bill inherently validates the methodology of stop-loss coverage. This is something that fully insured advocates might not like.
Read the article, Self-insurance group asks Congress for stop-loss help, for more information.