The Honorable (Legislator’s First & Last Name)
(Address Line 1)
Sacramento, CA (Zip Code)
Re: Opposition to SB 1431
Dear (Senator/Assemblyman) (Legislator’s Last Name),
I am writing to request that you oppose the above referenced legislation. SB 1431 would effectively take
away the self-insurance option for smaller employers looking to better control the cost for providing
quality health benefits for their employees by restricting the availability of medical stop-loss insurance.
If passed, small employers with 49 employees would not have access to the same health plans as
employers with 51 employees. This would put California small businesses at a disadvantage for:
1. Controlling the cost of their employee group health plan.
2. Hiring and retaining employees.
SB 1431 imposes new regulatory restrictions on stop-loss insurance in a way that it would make self-
funded health plans unavailable for smaller employers, therefore eliminating their ability to control the
cost and benefits they want to provide for their employees.
This will then leave them with two choices: either pay ever increasing health insurance premiums or
drop coverage for their employees.
SB 1431 is supported by certain insurance carriers such as Blue Shield of California. If passed, Blue
Shield would no longer be forced to compete on price and benefits against self-funded plans making it
possible for Blue Shield to charge whatever it wants to for its plans.
California’s small employers need competition among health plans to keep cost down and benefits stable.
I urge you to stand up for small businesses and oppose SB 1431. It is clear that this bill would result in
higher costs and more employees uninsured. Should you have any questions or would like to discuss
further, I can be reached at (phone number) or (email address). Thank you in advance for your time and
(Your first and last name)