What federal law governs self-insured plans?

The Employee Retirement Income Security Act (ERISA) is the federal law that primarily governs self-insured plans. ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries, and it establishes minimum standards for pension and health plans in the private industry.

One key aspect of ERISA is that it provides guidelines regarding the reporting and disclosure of plan information, ensuring that participants are informed about their benefits and rights. Additionally, ERISA sets standards for fiduciary responsibilities, establishing that those who manage and control plan assets must act in the best interests of the participants.

Self-insured plans, where employers assume the financial risk of providing health care benefits to their employees rather than using an insurance company, are directly regulated under ERISA. This means that the rules set forth by ERISA, including benefit claims processes and consumer protections, apply to these self-insured plans, providing a framework within which employers must operate.

Other options do not pertain directly to the governance of self-insured plans; for example, the Federal Insurance Contributions Act relates to funding Social Security and Medicare, the Healthcare Coverage Act is not a recognized federal law governing this aspect, and the Self-Insurance Regulation Act is not a standard reference used in federal legislation regarding self-ins