Are benefit plans created under P.A. 106 of 2007 subject to the benefit mandates found in the Insurance Code and General Insurance Laws of Michigan?
A benefit plan that is maintained on a self-insured basis is not subject to Michigan’s insurance laws. However, a self-insured pooled plan is still subject to the provisions of P.A. 106 of 2007. Benefit plans, including those created pursuant to P.A. 106 of 2007, that are underwritten by an insurer, HMO, or other entity licensed by the Office of Financial and Insurance Regulation are subject to the mandatory benefit provisions of the Insurance Code and General Insurance Laws of Michigan. Section 5(2) of P.A. 106 of 2007 requires pooled plans and public employers to solicit bids from a voluntary employees’ beneficiary program (VEBA) when establishing or renewing a medical benefit plan. How can I find a VEBA that might be interested in bidding on my benefit plan? A VEBA is the creation of the federal internal revenue code. VEBAs are not regulated by state government and Michigan does not maintain a listing of such entities. A pooled plan or public employer unable to locate a VEBA can mee
