Provides relative to health stop-loss insurance. (8/1/25) (EN NO IMPACT See Note)
Summary
SB 16 creates new rules for health stop-loss insurance issued in connection with small employer health plans in Louisiana, effective for policies issued on or after January 1, 2026. The bill requires such policies to limit renewal rate increases unless higher increases are actuarially justified, provide at least a 12-month guaranteed-rate contract term, include specified attachment points, and align policy exclusions and benefit limitations with the employer’s underlying health plan. It also requires stop-loss carriers to pay claims incurred during the contract period even if paid up to 24 months after expiration, and to continue covering eligible claims if the employer’s plan terminates before the end of the contract term, subject to minimum attachment points.
Impact
The bill amends Louisiana Revised Statutes Title 22 by enacting R.S. 22:883(H) and (I), adding substantive regulation of stop-loss insurance sold to small employers. It also prohibits, for employers with fewer than five employees, stop-loss policies issued on or after January 1, 2026, from including provisions that adjust specific deductibles or attachment points based on a member’s condition or disease. In addition, the bill requires a separate disclosure form for new policies, to be signed by the employer, and directs the commissioner of insurance to create a standardized disclosure form by January 1, 2026. Existing policies in force before that date are exempt.
Sentiment
The bill appears to have broad bipartisan support and little visible opposition. It passed the Senate and House with unanimous or near-unanimous votes, including final passage votes of 36-0 in the Senate and 98-0 in the House, and the conference report was also adopted overwhelmingly. The voting history suggests the measure was viewed as a technical but meaningful insurance-regulatory update rather than a controversial policy change.
Contention
No committee transcript is available, and the recorded votes show no direct opposition, so there is little evidence of active contention in the available materials. The main policy issues embedded in the bill are the new limits on premium increases, restrictions on underwriting or deductible adjustments for very small employers, and the added disclosure requirements. Any concern would likely come from insurers or small-employer plan sponsors affected by tighter rate and contract rules, but the legislative record provided does not show organized resistance.