Insurer must file new suit to fight regulation by Md.

September 03, 1999|BY A SUN STAFF WRITER

American Medical Security, Inc. will continue its legal battle with Maryland regulators over "stop-loss" policies, a spokesman for the Wisconsin insurance company, Cliff Bowers, said yesterday.

AMS' stop-loss policies limit the financial exposure of employers who self-insure for health benefits. State insurance regulators tried to regulate stop-loss coverage, arguing that some employers were using the policies to evade health insurance regulations.

The Supreme Court held such regulations improper, and the Maryland Legislature enacted a law to provide proper legal authority. A federal judge ruled Tuesday in Baltimore that AMS' challenge was not in order and said the insurer would have to file a new suit to challenge the law.

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