A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL CHANGES TO THE SMALL EMPLOYER GROUP HEALTH COVERAGE REFORM ACT TO MITIGATE THE EFFECTS OF THE FEDERAL AFFORDABLE CARE ACT ON NORTH CAROLINA'S SMALL BUSINESSES AND TO INCREASE STOP LOSS INSURANCE OPTIONS FOR SMALL EMPLOYERS.
Conference report makes the following changes to the 6th edition.
Amends GS 58-50-130(b1)(1), subdivision (a), by clarifying that the language "three to one" means "the ratio of three to one (3:1) as well as providing that in (b1)(1)d that the tobacco use adjustment shall not vary by more than "the ratio of one and two tenths to one (1.2:1)" (was, more than one and one-fifteenth to one).
Amends 58-50-130(a), providing that no small employer carrier, insurer, subsidiary of an insurer, or controlled individual of an insurance holding company can provide stop loss, catastrophic, or reinsurance coverage to small employers that have an annual attachment point for claims incurred per individual that is lower than $20,000 for plan years beginning in 2013. After that, the amount will be indexed according to the Consumer Price Index for Medical Services for All Urban Consumers for the South Region and will be rounded to the nearest whole thousand dollars. Provides that the index factor will be the index as of July of the year preceding the change divided by the index as of July 2012 (previously, did not include the indexing requirement). Also prohibits the provision of the above coverage to small employers that have an annual aggregate attachment point lower than the greater of (1) 120% of expected claims or (2) $20,000 for plan years beginning in 2013 or after that greater than the amount provided by the above noted indexing (previously, did not include the indexing requirement).
Directs the Department of Insurance to make the amount of the attachment points, as provided in Section 3 of the act, available to the public annually.
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