Self-Insurance Protection Act

Key Points

• Lets employers that self-fund health benefits buy special backup insurance without it being treated like regular health insurance
• Makes clear this backup “stop-loss” coverage protects the employer’s money, not the worker’s medical bills directly
• Blocks states from passing rules that would stop employer health plans from buying this kind of backup coverage
• Could make it easier for more small and mid-size employers to self-fund health benefits, instead of buying full insurance plans
• For workers, day‑to‑day coverage may not look different, but how the employer manages big, surprise medical costs would change behind the scenes