Self-Insurance Protection Act

Self-Insurance Protection Act - Amends the Public Health Service Act, the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to exclude from the definition of "health insurance coverage" a stop loss policy obtained by a self-insured health plan or a plan sponsor of a group health plan that self-insures the health risks of its plan participants to reimburse the plan or sponsor for losses incurred in providing health or medical benefits to such plan participants in excess of a predetermined level set forth in the stop loss policy.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1735 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1735

To amend the Public Health Service Act, the Employee Retirement Income 
Security Act of 1974, and the Internal Revenue Code of 1986 to exclude 
 from the definition of health insurance coverage certain medical stop-
loss insurance obtained by certain plan sponsors of group health plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 19, 2013

   Mr. Alexander (for himself, Mr. Risch, Mr. Rubio, Mr. Crapo, Mr. 
   Coburn, Mr. Enzi, Mr. Cornyn, Mr. Barrasso, Mr. Boozman, and Mr. 
  McConnell) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Public Health Service Act, the Employee Retirement Income 
Security Act of 1974, and the Internal Revenue Code of 1986 to exclude 
 from the definition of health insurance coverage certain medical stop-
loss insurance obtained by certain plan sponsors of group health plans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Self-Insurance Protection Act''.

SEC. 2. CERTAIN MEDICAL STOP-LOSS INSURANCE OBTAINED BY CERTAIN PLAN 
              SPONSORS OF GROUP HEALTH PLANS NOT INCLUDED UNDER THE 
              DEFINITION OF HEALTH INSURANCE COVERAGE.

    (a) PHSA.--Section 2791(b)(1) of the Public Health Service Act (42 
U.S.C. 300gg-91(b)(1)) is amended by adding at the end the following 
new sentence: ``Such term shall not include a stop loss policy obtained 
by a self-insured health plan or a plan sponsor of a group health plan 
that self-insures the health risks of its plan participants to 
reimburse the plan or sponsor for losses that the plan or sponsor 
incurs in providing health or medical benefits to such plan 
participants in excess of a predetermined level set forth in the stop 
loss policy obtained by such plan or sponsor.''.
    (b) ERISA.--Section 733(b)(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1191b(b)(1)) is amended by adding at 
the end the following new sentence: ``Such term shall not include a 
stop loss policy obtained by a self-insured health plan or a plan 
sponsor of a group health plan that self-insures the health risks of 
its plan participants to reimburse the plan or sponsor for losses that 
the plan or sponsor incurs in providing health or medical benefits to 
such plan participants in excess of a predetermined level set forth in 
the stop loss policy obtained by such plan or sponsor.''.
    (c) IRC.--Section 9832(b)(1)(A) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new sentence: ``Such 
term shall not include a stop loss policy obtained by a self-insured 
health plan or a plan sponsor of a group health plan that self-insures 
the health risks of its plan participants to reimburse the plan or 
sponsor for losses that the plan or sponsor incurs in providing health 
or medical benefits to such plan participants in excess of a 
predetermined level set forth in the stop loss policy obtained by such 
plan or sponsor.''.
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