Senate Bill No. 16, introduced by Senator McMath, aims to establish new regulations for health stop-loss insurance policies issued to small employers, effective January 1, 2026. The bill enacts R.S. 22:883(H) and (I), which outlines specific criteria that these insurance policies must meet. Key requirements include prohibiting adjustments to deductibles or attachment points, limiting renewal rate increases to the medical care index of the consumer price index plus fifty percent (unless actuarially justified), ensuring a minimum twelve-month contract term with guaranteed rates, and aligning stop-loss plan benefit limitations with the employer's health plan. Additionally, the policies must cover incurred and unpaid claims upon termination and must include both specific and aggregate attachment points.

Furthermore, the bill mandates that any health stop-loss policy issued after January 1, 2026, must include a separate disclosure form that details coverage limitations, potential employer risks, and the impact of claims on renewals. This form must be signed by the employer prior to purchasing the policy. The commissioner of insurance is tasked with developing a standardized disclosure form by November 1, 2025. The legislation is set to take effect on August 1, 2025, and aims to enhance transparency and protect small employers in the health insurance market.