HB552 - Health Insurance - Medical Stop-Loss Insurance - Small Employers

This bill reassigns $30k more risk to a small business who self-insures. Currently, they are required to self- fund $10k, the bill moves that amount to $40k, making it harder for small businesses to offer insurance to employees. The purpose behind this bill is to move people off of the small business pool and into the public exchange to lower the rates of the public exchange.

I received the testimony below from a small business constituent:

The bill calls for a $40,000 specific stop loss deductible. We have 190 employer clients in Southern Maryland. Of these we have 39 small employers self-funded. 34 have specific stop loss limits of either $10K or $15K. 5 have limits of either $25K or $30K. We have NO clients with limits at the prescribed level of $40K. To move to $40K would eliminate the self-funded option for most of these clients given the increase in claims expectations.

I oppose this bill, unless significant changes are made, because of its potential to reduce health plan choices for small business.

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August 27, 2017
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Email: Matt.Morgan@house.state.md.us

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Delegate Matt Morgan
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