Have changes to the stop-loss insurance regulations impacted the way you insure your employees? NFIB is collecting information on how changes to the stop-loss insurance regulations have affected small businesses in Maryland. We will share the results with the Maryland Insurance Commission, the agency that is compiling a report on the recent changes to the regulations. CLICK HERE TO TAKE OUR SURVEY
During the 2015 Legislative Session, the Maryland Legislature passed a bill that made changes to the Maryland law regulating stop-loss insurance. This bill increased the point at which stop-loss insurance takes over from $10,000 to $22,500. As a result, self-insurance will be more expensive and is now a less attractive option for Maryland small businesses. The bill also increases the aggregated attachment from the current 115% of expected claims to 120% which increases potential liability for small employers who wish to use a stop-loss insurance policy.
Under self-insurance, an employer puts aside a pot of money to cover employees’ medical bills; stop-loss insurance is a cornerstone of self-insurance. Because no employer wants to take on the unlimited risk that catastrophic illness or injury to even a single employee can bring, self-insuring businesses buy policies that in effect stop their losses at a certain point. Typically, those policies carry protection against unforeseen expenses to both individual employees and to the group as a whole.
Raising the limit to $22,500 makes self-insurance a much less attractive option for Maryland small businesses. If you self-insure or have considered this option, please take our survey.