Self-Insurance Protection Act

The Self-Insurance Protection Act would amend the Employee Retirement Income Security Act of 1974 to exclude certain medical stop-loss insurance purchased by self-insured group health plan sponsors from the federal definition of "health insurance coverage." This change would clarify that stop-loss policies—used by employers to protect against catastrophic claims—are not subject to state insurance regulation when obtained to reimburse the plan or sponsor for losses exceeding a predetermined threshold. The bill also asserts that ERISA preempts state laws that interfere with a group health plan’s ability to insure against excess or unexpected claims losses, aiming to ensure nationwide availability of stop-loss coverage for self-funded plans.