Who is an employer under ERISA?

any person acting directly as an employer, or indirectly in the interest of an employer, in relation to an employee benefit plan; and includes a group or association of employers acting for an employer in such capacity.” Thus, ERISA defines the term “employer” to include the “direct” (or common law) employer of the …

What constitutes an Erisa health plan?

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

What is a non erisa health plan?

Non-ERISA Plans Definition. Plans that provide non-pension fringe benefits. to employees; known as “Employee Welfare.

Are association health plans self funded?

Self-funded health plans, otherwise known as self-insured health plans, are health plans where the financial risk associated with medical claims is held by the organization sponsoring the health coverage. In the case of an association health plan, self-funding would mean that the association itself retains the risk.

What is the difference between ERISA and non ERISA?

An ERISA plan is one you will contribute to as an employer, matching participants’ inputs. ERISA plans must follow the rules of the Employee Retirement Income Security Act, from which the plan earned its name. Non-ERISA plans do not involve employer contributions and do not need to follow the stipulations of the Act.

Is Blue Cross Blue Shield an ERISA plan?

There are two types of ERISA groups: fully insured and self-funded. A fully insured group purchases insurance through a company like Blue Cross Blue Shield of Michigan or Blue Care Network. A self-funded group, as the name suggests, funds its own plan and pays for employee health care.

How do you tell if a health insurance plan is ERISA?

If it is an employer-employee plan, you next look to funding. If the plan is funded by contribution from the employer and employee, it is a self-funded ERISA plan and pre-empts state law. If the plan is funded by purchased insurance coverage, it is a fully insured ERISA plan and is subject to state law.

Which states allow association health plans?

Today, roughly 30,000 individuals living in States like Alabama, Arizona, Florida, Georgia, Michigan, Missouri, Minnesota, Nebraska, Nevada, Oklahoma, Tennessee, Texas, West Virginia, and Wisconsin are covered by AHPs that allow employers in different industries and self-employed individuals with no employees to …