How does the new law apply to companies with self-funded plans?
Self-funded plans–those where the employer accepts the risk for the health benefits it providers, rather than buying coverage from an insurance company–are generally exempt from state insurance regulations and are instead regulated by the Employee Retirement Income Security Act (ERISA). The new health reform law contains many provisions that apply nationally to both self-funded plans and fully insured plans. Some of these provisions include the extension of dependent coverage until age 26, no cost sharing for preventive services, the limit on waiting periods to no more than 90 days, and no lifetime or annual limits on coverage. However, it appears that self-funded plans will not be subject to meeting the minimum essential health benefit requirements, such as limits on deductibles.
