SPONSOR: McGaugh
This bill changes the definition of "multiple employer self- insured health plans" to include plans established for the purpose of offering benefits to two or more self-employed individuals and their dependents.
Additionally, current law requires health plans to establish loss reserves for incurred losses and unearned premiums, as well as surplus accounts equal to certain amounts. This bill requires the surplus accounts to be equal to the greater of the following:
(1) $600,000; or
(2) An amount equal to two times the authorized control level risk-based capital.
Statutes affected: