Calif. Senate OKs Bill To Regulate Stop-Loss Insurance

Law360, New York (June 4, 2012, 9:35 PM EDT) -- The California Senate on Thursday approved a bill aimed at preventing insurers from cherry-picking healthy individuals to cover under stop-loss policies issued to small businesses.

Patricia McConahay, a spokeswoman for the California Department of Insurance, said the bill addresses concerns that the Affordable Care Act might prompt stop-loss carriers to attract small employers with the healthiest, youngest workers out of the health insurance marketplace.

"This would create adverse selection and lead to increased costs for most small employers," McConahay said Monday. "The bill is intended to...
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