SB 701, as introduced, Berryhill. Stop-loss insurance coverage: attachment points.
Existing law prohibits a stop-loss insurance policy issued, reissued, or renewed on or after January 1, 2016, to a small employer from containing an aggregate attachment point for a policy year that is less than the greater of one of the following: $5,000 multiplied by the total number of group members, 120% of expected claims, or $40,000.
This bill would instead require that the $5,000 per group member attachment point be changed to $2,500 per employee.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10752.4 of the Insurance Code is
2amended to read:
A stop-loss insurance policy issued, reissued, or
4renewed on or after January 1, 2016, to a small employer shall not
5contain any of the following provisions:
6(a) An individual attachment point for a policy year that is less
7than forty thousand dollars ($40,000).
8(b) An aggregate attachment point for a policy year that is less
9than the greater of one of the following:
P2 1(1) Five thousand dollars ($5,000) times the total number of
2group members.
3(1) Two thousand five hundred dollars ($2,500) per employee.
end insert4(2) One hundred twenty percent of expected claims.
5(3) Forty thousand dollars ($40,000).
6(c) A provision for direct coverage of an employee or dependent
7of an employee.
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