Small businesses who offer comprehensive group health insurance plans are usually more likely to attract quality employees and retain qualified people. Using a self-funded insurance plan is becoming more popular as people are looking for more flexibility and more cost effective ways to provide health insurance coverage. Administering a self-funded insurance plan requires specific responsibilities to meet all of the government requirements and ERISA compliance.
How ERISA Compliance Works
There are basic rules employers need to follow as plan sponsors for self-funded insurance. The Employee Retirement Income Security Act (ERISA) requires specific standards for the management of employee benefit plans and its assets or fiduciaries. ERISA compliance simply means that coverage for medical care including sickness, hospitalization, dental, vision, and prescription drugs comply with certain standards in terms of non-discrimination and financial transparency. In addition, fiduciary responsibility requires that all contributions for a self-funded plan must be accounted for. Businesses usually enjoy specific tax benefits for this type of plan which makes accountability essential.
ERISA compliance also requires employers to regularly provide participants with information about the plan and how it is funded. There are also minimum standards for participation and how long it takes to be vested. This means the amount of time employees are required to work before they are eligible for benefits. ERISA also sets specific standards that require sponsors/employers to provide adequate funding for the plan. Accountability of the plan fiduciaries who control the plan’s management need to follow specific principles of conduct to ensure the benefits are available when needed.
Who To Go To For Help
USA Business Choice offers self-funded insurance plans that strictly follow ERISA compliance. Employers who choose self-funded insurance may not always be aware of changes and additions to the ERISA requirements. Those companies who want to make sure their employees are protected will appreciate the benefits of working with a national self-funded health insurance provider. Since the employer is ultimately in charge of ERISA compliance it is important to ask questions.
Contact us at USA Business Choice for more information. We are here to help.