SB 1431 Clears Committee in Extended Voting Period (Correction to Previous Report)
SIIA’s communication earlier today reporting that SB 1431 failed to pass out of the Assembly Health Committee late Tuesday was incorrect. While the necessary votes for passage were not recorded immediately following the testimony, it did pass out of the committee on party-line vote at the conclusion of an extended voting period.
The earlier report was based on incomplete information received from a self-insurance industry representative who was present at the committee hearing. The Fourth of July Holiday made it especially difficult to confirm the information prior to the release of this morning’s communication. SIIA apologizes for the incorrect reporting.
We have confirmed today that the committee did accept an amendment that would grandfather existing stop-loss insurance arrangements from higher attachment point requirements as contemplated by the legislation. Negotiations remain ongoing with regard to the actual attachment levels that will need to be inserted into the bill in order for it to be approved by the Legislature.
SB 1431 has now been referred to the Assembly Appropriations Committee, where it will be heard when the Legislature comes back into session later this summer.
In this regard, please watch for additional reporting from SIIA. You can also access real time information about SB 1431 and learn how you join the opposition on-line at www.facebook.com/DefeatSB1431.
This legislative action in California is just the latest development in the ongoing attack on self-insurance through new stop-loss insurance regulation as spearheaded by the National Association of Insurance Commissioners (NAIC). Federal regulators are also taking a closer look at the possibility of issuing new rules that could make it more difficult for smaller employers to control their health care financial risk transfer decisions.
Given all of this activity taking place at both the federal and state level, SIIA will be producing a webinar to educate members and other industry stakeholders analyzing current developments and discuss how the association has been positioning itself to respond to these significant threats. Please click here for webinar information, including registration forms.