What is a Health and Welfare plan?
A. A Health and Welfare plan is a program that provides financial reimbursement or income to an individual in the event of disability or if certain health related expenses are incurred. Medical expenses are usually covered, and many plans also cover dental, vision, or other health care expenses. Health and Welfare plans are commonly established by employers for the benefit of their employees, but can also be established by a group of employers who are party to a collective bargaining agreement or members of an association. In this situation, the group of employers usually establishes a trust fund to sponsor the Health and Welfare plan and contracts with a third party administrator to handle all administrative and financial details. Q.
