By Allison Bell
Regulators want to know if small businesses are running to self-funding to escape Obamacare
The ERISA Working Group, an arm of the National Association of Insurance Commissioners, asked members to report any big fluctuations in the stop-loss sector in their jurisdictions. Twenty-three states replied.
Ten said they’ve seen increases in stop-loss filings, and 12 said they believe they have seen an increase in interest in use of self-funding in the small-employer market.
But “13 states indicated no significant change in the number or kinds of stop-loss filings,” the working group reported in a summary of the survey results.
Regulators in 11 states said they’ve not seen much change in small employers’ interest in self-funding or did not know whether any change had occurred.
Michigan and Nevada regulators both reported an increase in filings and changes in the types of stop-loss filings.
Self-insured plans are exempt from several provisions of the Patient Protection and Affordable Care Act
. Some health policy watchers have suggested the small employers with the lowest claims might rush to cut their premiums and increase their flexibility by switching to self-insured plans. Others have suggested a small-employer rush to stop-loss could leave traditional insurers with the sickest, oldest employers and eventually lead to a death spiral in the small-group market.
Originally published on BenefitsPro.com