Section 5 of SB 479 Removed & CTDOI Raises Minimum S/L from $6,500 to $20,000

GOOD NEWS!

Section 5 of SB 479 REMOVED!

Hi All:

Thank you all (clients, brokers, stop-loss carriers and business partners) for a great effort in taking the time to consider this matter and submit testimony and or letters to your representatives in opposition to Section 5 of Bill 479.

We received word last Thursday (3/20/14) at 5pm, upon the final vote of the Insurance and Real-Estate Committee, that Section 5 was removed and our action was a success!

Upon review of the testimony submitted to the committee, we believe that the Connecticut Exchange wanted a minimum stop-loss amount even higher than $45,000. We will need to keep a close eye on this for any amendments throughout the rest of this legislative session and in subsequent years. If something comes up, we will let you know.

If you would like to see the testimony submitted to the committee, please go to this link:

http://www.cga.ct.gov/asp/menu/CommDocTmyBillAllComm.asp?bill=SB-00479&doc_year=2014

Please be sure to also read the update below regarding another new development in the State of Connecticut regarding an increase to the minimum stop loss deductible effective 7/1/2014.

NEW DEVELOPMENT!

insuranceCT DOI Raises Minimum Stop Loss from $6,500 to $20,000

Separate from 479, a big change did happen regarding stop-loss in Connecticut. On March 17th the Connecticut Insurance Department changed the minimum stop-loss deductible from $6,500 established in February 1990, to $20,000 (the NAIC model) effective for groups that renew 7/1/14 and beyond.

See the bulletin http://www.ct.gov/cid/lib/cid/Bulletin_HC-95_and_PC-75.pdf

Thankfully, none of our current customers are impacted by this development. Diversified Group is going to be meeting with the CTDOI to discuss this bulletin with the hopes that with our input, we can make sure that stop-loss remains a strong option for small and midsized employers in this state.

Thank you again for your help. We will likely reach out for your assistance on this topic as the need arises.

Best Regards

Diversified Group

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