Senate Bill No. 16, introduced by Senator McMath, aims to amend the regulations surrounding health stop-loss insurance in Louisiana. The bill enacts a new provision under R.S. 22:883(H), which stipulates that health stop-loss insurance coverage can only be issued to large employers, as defined in R.S. 22:1061. This definition specifies that a large employer is one that has employed an average of at least 51 employees on business days during the preceding calendar year and has at least two employees on the first day of the plan year.

The bill is set to take effect upon the governor's signature or, if not signed, after the designated time for bills to become law without the governor's signature. This legislative change is intended to clarify the eligibility criteria for health stop-loss insurance, ensuring that only larger employers can obtain this type of coverage in connection with their employee benefit plans.