North Carolina lowers the small employer threshold for stop-loss and reinsurance coverage from 12 to 5 employees

Original title: Increase Access for Small Employers/Insurance.

Last action · May 1, 2025: Ref To Com On Rules and Operations of the Senate (Senate action)Sponsors: Erin Paré and 18 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

North Carolina reduces the minimum employee threshold from 12 to five for small employers accessing stop-loss, catastrophic, and reinsurance health insurance coverage, effective October 1, 2025.

Why it matters

Changes insurance market regulations for businesses employing between 5 and 11 workers, altering their ability to purchase specific types of risk-mitigation coverage starting October 1, 2025.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

small employers

Businesses employing between 5 and 11 workers become subject to updated stop-loss and reinsurance coverage underwriting and rating standards.

Directly affected

small employer carriers and insurers

Insurers must comply with modified employee threshold rules when providing stop-loss, catastrophic, or reinsurance coverage.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the new employee threshold for small employer insurance regulations?

The threshold is lowered from fewer than 12 eligible employees to fewer than five eligible employees.

When does this change take effect?

The act becomes effective on October 1, 2025, and applies to contracts issued, renewed, or amended on or after that date.

What else do you want to know?

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Where This Stands

Currently passed chamber. The next step in the legislative lifecycle is Law.

Procedural history

17 actions

May 1, 2025Senate
Ref To Com On Rules and Operations of the Senate
May 1, 2025Senate
Passed 1st Reading
May 1, 2025Senate
Regular Message Received From House
May 1, 2025House
Regular Message Sent To Senate
Apr 30, 2025House
Passed 3rd Reading
Apr 30, 2025House
Passed 2nd Reading

Show 11 earlier actions

Apr 29, 2025House
Placed On Cal For 04/30/2025
Apr 29, 2025House
Cal Pursuant Rule 36(b)
Apr 29, 2025House
Reptd Fav
Apr 29, 2025House
Re-ref Com On Rules, Calendar, and Operations of the House
Apr 29, 2025House
Reptd Fav
Apr 9, 2025House
Re-ref Com On Health
Apr 9, 2025House
Reptd Fav
Mar 11, 2025House
Serial Referral To Judiciary 1 Stricken
Feb 21, 2025House
Ref to the Com on Insurance, if favorable, Health, if favorable, Judiciary 1, if favorable, Rules, Calendar, and Operations of the House
Feb 21, 2025House
Passed 1st Reading
Feb 18, 2025HouseIntroduced
Filed

Version history

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