Union Labor Life Insurance Company will be selling unlimited annual and lifetime maximum health plan stop-loss insurance.
Union Labor, a unit of ULLICO Inc., Washington, says it will offer unlimited lifetime maximum coverage and annual maximums of up to $10 million per person for each policy year for stop loss policies on self-funded plans.
Union Labor also will offer employers an unlimited annual maximum coverage option.
Union Labor sells much of its coverage to municipal plans, and to the multi-employer Taft-Hartley fund plans that cover union workers at many private employers.
Employers that self-fund their health plans, rather than relying on insurance to cover all insured losses, use stop-loss policies to limit the amount of claims risk they assume.
The new Affordable Care Act — the legislative package that includes the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act – will be banning lifetime health plan benefits limits in 2011, restricting use of annual limits from 2011, and banning use of annual limits starting in 2014.
Plans that have had a low annual maximum, such as $100,000 or $200,000, may have an especially strong need to set or expand stop-loss programs, Union Labor says.
In related news, Union Labor says letting dependent children stay on an enrolled worker’s coverage up to age 26 will not affect the premium rates.
ACA provisions will require plans to offer dependent coverage up till age 26 by the next plan anniversary on or after Sept. 23. Some employers are extending dependent coverage up to 26 before the deadline.
“I am excited about these enhancements to our stop-loss products and expect more in the future,” Larry Paradise, a Union Labor vice president, says in a statement. “It is going to be a busy second half of 2010.”