Remember my blog from last week talking about the government taking steps to restrict self-insuring for California small employers? Well, today is the day they take their first step. Amendments were made to SB 1431 (De Leon) which would severely restrict the ability of small employers in California to self-insure for health care coverage by unreasonably changing the limits and requirements of stop loss policies, and today, April 25, 2012, those amendments will be heard on the California Senate Floor. Lawmakers believe that this “new, and controversial,” self-insurance for small businesses undermines Health Care Reform and therefore they are taking action to limit or completely stop self-insurance for small business. However, as you may or may not be aware, self-insurance is not a new idea, it certainly is not controversial, and it has been around in the small business arena for decades thanks to companies like Great West. Self-insurance is a viable option for ALL companies to take a look at, small and large. Self-insurance allows companies to see what is going on within their employee population and develop disease management and wellness programs that have the ability to affect their employees and enrolled dependents in a positive manner; even helping to better the health of their workforce. It is with the claims information that is readily available within self-insurance that employers and carriers will be able to take pro-active steps to start cutting down healthcare costs within their own business, and within healthcare as a whole. When we are able to tackle health issues before they get out of control we will be able to start turning the tide on the rising cost of healthcare. And self-insurance is one of the greatest tools we have to get the information needed to be proactive.

I have taken the position of OPPOSE on SB 1431 (De Leon) and have sent letters and made phone calls to all members of the Senate Health Committee asking them to OPPOSE the bill as well. Again, this bill is being heard today, April 25th. If you think self-insurance is an option that should be available to both large and small employers I urge you to take a few minutes out of your day to contact the members of the Senate Health Committee and let them know you want them to OPPOSE SB 1431 (De Leon) with the amendments that were made. If you would like some specific talking points on why the committee members should oppose SB 1431 (De Leon) please check the following link:


Senate Health Committee Members

Senator District Phone
Elaine Alquist (D) 13 916-651-4013
Joel Anderson (R) 36 916-651-4036
Sam Blakeslee (R) 15 916-651-4015
Kevin De Leon (D) 22 916-651-4022
Mark DeSaulnier 7 916-651-4007
Tom Harman (R) (Vice Chair) 35 916-651-4035
Ed Hernandez (D) (Chair) 24 916-651-4024
Michael Rubio (D) 16 916-651-4016
Lois Wolk (D) 5 916-651-4005


To email, please use this pattern: senator.(last name of senator)


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