Act Now to Oppose SB 1431
CAHU-opposed SB 1431 (De Leon) seeks to essentially ban small business use of stop-loss insurance by increasing policy costs to unaffordable levels.
SB 1431 will move to the Assembly Appropriations Committee with a likely hearing date of Wednesday, August 8, 2012. CAHU encourages members and their small business clients to contact their local Assembly and Senate representatives and ask them to oppose SB 1431. Click here to find your legislator.
Click here for a sample letter to use as a template for contacting Assembly Appropriations Committee members and urge them to vote NO on SB 1431.
Click here for an Assembly Appropriations Committee contact list. It is preferred that Committee members receive communications via FAX. To email the Committee, please use this pattern: assemblymember.(last name of assemblymember)@assembly.ca.gov (example: firstname.lastname@example.org)
Small businesses face higher costs if SB 1431 is enacted.
SB 1431 seeks to set a minimum specific stop-loss deductible of $60,000 per employee and per dependent claim, along with a high individual aggregate attachment point of 130%. As such, SB 1431 is the only bill currently moving through the California Legislature that specifically intends to increase health insurance costs for small businesses with less than 50 employees.
CAHU has been working jointly with NAIFA California and IBA West in strong opposition to SB 1431. Others working hard against the bill include the California Chamber of Commerce; the National Federation of Independent Business; Anthem Blue Cross; the Association of California Life and Health Insurance Companies; the Asian Pacific Chamber; Redondo Beach Chamber and Visitors Bureau; Diversified Benefit Solution; HCC Life Insurance Company; and many independent insurance agents and companies throughout the state.
Listed supporters of SB 1431 include Blue Shield of California; Kaiser Permanente; the California Association of Physician Groups; Bay Area Council; Health Access California; Consumer Federation of America; SEIU California; and Small Business Majority. SB 1431 is sponsored by the California Department of Insurance, which believes that SB 1431 is "necessary to prevent the state's small group insurance market from falling victim to adverse selection and unsustainable premium levels, protecting California's small businesses, its employees, and the success
of post ACA insurance market," according to the Assembly Health Committee analysis.
Self-insurance, combined with stop-loss coverage for excessive, unexpected claims, frequently offers the best option for small employers seeking alternative ways to provide affordable health coverage for their employees. Proponents want a very high attachment point set in SB 1431; CAHU and other opponents seek a far lower attachment point. SB 1431 is one of the top priority bills of concern to CAHU.
CAHU Legislative Resources:
To learn more about the legislation CAHU supports, opposes or watches, visit www.cahu.org and then:
1. Click on "Legislation" (on the main menu)
2. Click on "Bills & Legislation"
3. Find information such as bill reports, sample legislative letters, regulatory documents, how to find your legislator, articles, etc.