II 

114TH CONGRESS 

1ST SESSION S. 775 

To amend the Public Health Service Act, the Employee Retirement Income 

Security Act of 1974, and the Internal Revenue Code of 1986 to exclude 

from the definition of health insurance coverage certain medical stoploss insurance obtained by certain plan sponsors of group health plans. 

IN THE SENATE OF THE UNITED STATES 

MARCH 18, 2015 

Mr. CASSIDY (for himself, Mr. ALEXANDER, Mr. ISAKSON, Mr. RUBIO, Mr. 

BURR, Mr. ROBERTS, and Mr. BARRASSO) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Public Health Service Act, the Employee Retirement Income Security Act of 1974, and the Internal 

Revenue Code of 1986 to exclude from the definition 

of health insurance coverage certain medical stop-loss 

insurance obtained by certain plan sponsors of group 

health plans. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Self-Insurance Protec5 tion Act’’. 


EMCDONALD on DSK67QTVN1PROD with BILLS
2 

•S 775 IS

1 SEC. 2. CERTAIN MEDICAL STOP-LOSS INSURANCE OB2 TAINED BY CERTAIN PLAN SPONSORS OF 

3 GROUP HEALTH PLANS NOT INCLUDED 

4 UNDER THE DEFINITION OF HEALTH INSUR5 ANCE COVERAGE. 

6 (a) PHSA.—Section 2791(b)(1) of the Public Health 

7 Service Act (42 U.S.C. 300gg–91(b)(1)) is amended by 

8 adding at the end the following new sentence: ‘‘Such term 

9 shall not include a stop loss policy obtained by a self-in10 sured health plan or a plan sponsor of a group health plan 

11 that self-insures the health risks of its plan participants 

12 to reimburse the plan or sponsor for losses that the plan 

13 or sponsor incurs in providing health or medical benefits 

14 to such plan participants in excess of a predetermined level 

15 set forth in the stop loss policy obtained by such plan or 

16 sponsor.’’. 

17 (b) ERISA.—Section 733(b)(1) of the Employee Re18 tirement Income Security Act of 1974 (29 U.S.C. 

19 1191b(b)(1)) is amended by adding at the end the fol20 lowing new sentence: ‘‘Such term shall not include a stop 

21 loss policy obtained by a self-insured health plan or a plan 

22 sponsor of a group health plan that self-insures the health 

23 risks of its plan participants to reimburse the plan or 

24 sponsor for losses that the plan or sponsor incurs in pro25 viding health or medical benefits to such plan participants 


EMCDONALD on DSK67QTVN1PROD with BILLS
3 

•S 775 IS

1 in excess of a predetermined level set forth in the stop 

2 loss policy obtained by such plan or sponsor.’’. 

3 (c) IRC.—Section 9832(b)(1)(A) of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new sentence: ‘‘Such term shall not include a 

6 stop loss policy obtained by a self-insured health plan or 

7 a plan sponsor of a group health plan that self-insures 

8 the health risks of its plan participants to reimburse the 

9 plan or sponsor for losses that the plan or sponsor incurs 

10 in providing health or medical benefits to such plan par11 ticipants in excess of a predetermined level set forth in 

12 the stop loss policy obtained by such plan or sponsor.’’. 

Æ 


EMCDONALD on DSK67QTVN1PROD with BILLS