Union Labor Life Eliminates Lifetime Stop Loss Insurance Limits

Jun 21, 2010, 11:11 ET from ULLICO Inc.

WASHINGTON, June 21/PRNewswire/ -- The Union Labor Life Insurance Company (ULL), a wholly owned subsidiary of  ULLICO Inc., a privately held specialty insurance and investments firm, and a leader in the underwriting of Stop Loss Insurance, has acted swiftly to meet key requirements of the recent health reform legislation, the Patient Protection and Affordable Care Act.

One significant change brought about by the recent legislation is the elimination of maximum limits on health insurance coverage, initially for one's lifetime. Annual limits are lifted beginning in January 2014. Until then, plans are allowed to set annual maximums for "essential benefits." The definition of "essential benefits" and the minimum level of funding are to be established by the Secretary of Health & Human Services in June 2010.

Because ULL provides an extensive array of Stop Loss Insurance coverage, including broad Stop Loss coverage for medical, prescription, dental and vision all under one policy and prescription only Stop Loss, removal of limits is a very significant change not only for ULL but also for their client Taft-Hartley Fund Plans, municipality customers and single employers.  

Accordingly, ULL has announced it will offer unlimited lifetime maximum coverage and annual maximums up to $10 million / person for each policy year for Stop Loss policies on self-funded plans. Pricing will be based on the level of the annual maximum selected by the policyholder. ULL will also offer the option of unlimited annual maximum coverage for policyholders who desire to move to that level prior to 2014.  

Many plans have a lifetime maximum but do not today have an annual maximum. "However, for those plans that have a low annual maximum such as $100,000 or $200, 000," noted Dan Wolak, ULL's Vice President and Chief Actuary, "the self-funded customers that previously did not purchase Stop Loss coverage protection would likely be considering it now."

On a related item, ULL noted that the legislation requires that plans cover dependent children up to the age of 26. Plans have the option of expanding that coverage before the next plan anniversary on or after September 23, 2010 as required in the legislation. Adding dependents to age 26 will not impact the policyholder's premium rates. ULL will follow the decision of the plan regarding its timing of extending coverage.

The Company has also announced that any subsidy paid to a plan by the Federal Government, under the Early Retiree Reinsurance Program, will remain with the plan and not be used to offset any payment from ULL.  

"As we continue to learn more about the new regulations and their impact on our clients, we will be communicating with them," remarked Larry Paradise, ULL's VP of Sales. "I am excited about these enhancements to our Stop Loss products and expect more in the future.  It is going to be a busy second half of 2010." 

About ULLICO Inc.

ULLICO Inc. is a $5.5 billion insurance and financial services holding company whose subsidiary companies include The Union Labor Life Insurance Company; ULLICO Investment Advisors, Inc.; ULLICO Investment Company; ULLICO Casualty Company; and ULLICO Casualty Group, Inc.

ULLICO has proudly served the union workplace for more than eighty years.  Today, through its family of companies, it offers specialty insurance and investment products to its single most important client, the American labor movement. For additional information, visit www.ullico.com .