Bill Description: This bill would allow the director of the Department of Insurance to extend the grace period for a self-funded insurance plan to reach surplus requirements.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
Currently, companies are permitted offer insurance plans if they maintain sufficient reserves to cover claims and a surplus. The surplus requirement is “ the equivalence of three (3) months of contributions for the current plan year; or one hundred ten percent (110%) of the difference between the total dollar aggregate stop-loss attachment point plus costs of operation and the total dollar expected contributions for the current plan year.” Currently, companies have 12 months to achieve the surplus. This bill would allow the director of the Department of Insurance to grant a grace period of another 12 months. (+1)
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