For small businesses that have struggled under the Affordable Care Act, a new proposal has been introduced that would expand health insurance options afforded to small employers. The new proposal, known as the Association Health Plans, would help small businesses unable to afford employee health coverage to join together and increase their bargaining power. This proposal is expected to see the addition of self-funded plan options in the coming years, but the effects are currently unclear.

At a time when many people feel powerless over their own health care, giving your employees choices about how they manage their own medical costs is a good thing — both for them and for you. With Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs), self-funded plans are possible for employees to utilize.

Pooled stop-loss insurance has its pros and cons, depending on your business structure and employee needs. It’s essential to take the time to carefully weigh these pros and cons of pooled stop-loss insurance before committing to a policy. Obtaining coverage with a large group of fellow sponsors can garner your company with additional benefits, but also less overall control of the process.

In a recent stop loss premium survey conducted by Aegis Risk Medical, data exemplified how stop loss coverage continues to play a valuable role for businesses and their employees.

Stop-loss insurance is not health insurance, but rather a type of financial reinsurance. Unlike health insurance, stop-loss ensures protection from debt when payable claims exceed a deductible. Stop-loss and health benefit plans have seen an increase in disputes regarding what is payable, how much is payable, and what can be covered by stop-loss. This has in turn led to higher amounts of claims paid by benefit plan sponsors that are not covered by stop-loss insurance.

The Self Insurance Protection Act has provided protection through employer-sponsored insurance to millions of workers within the United States. As this bill continues through the legislative process to become law, self-funded employers need be following the movement of this monumental document for stop loss insurance.