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Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2025-05-01

Vote Breakdown

Plain Language Summary

This bill increases access to stop loss and catastrophic insurance coverage for small employers in North Carolina by lowering the threshold of what qualifies as a small employer from businesses with fewer than 12 employees to those with fewer than 5 employees. Stop loss insurance protects employers from unexpected large medical claims by their employees.

Arguments in Favor

• •Supporters argue this bill helps very small businesses afford health insurance for their employees by giving them access to stop loss coverage that protects against catastrophic medical expenses.
• •By expanding eligibility to smaller employers, this change could make health benefits more financially feasible for micro-businesses with 5-11 employees, potentially increasing employee access to coverage and reducing the financial risk small business owners face.

Arguments Against

• •Opponents may argue that expanding stop loss coverage to smaller groups could increase insurance costs or reduce protections for individual employees if insurers price these policies differently.
• •Some may be concerned that allowing smaller employers into this market could strain the insurance system or create adverse selection, where only higher-risk groups purchase the coverage, potentially raising costs for all participants.