New broker disclosure rules taking effect 27 December 2021 have most health insurance brokers and consultants running scared. But reptiles earning undisclosed compensation off non-ERISA plans are resting easy. They believe the new disclosure rules don’t apply to them. Or do they?
“If self-funded employers do not pay attention, history will repeat itself much to the benefit of ERISA class action lawyers around the county. But this time, the dollars at stake will be greater, the liabilities steeper and there will be no D&O policy in place large enough to begin to cover our collective exposure.”
“ERISA’s fee disclosure rules now apply to group health plans! These rules are largely modeled after the retirement plan fee disclosure rules and apply to any service provider that is expected to receive, directly or indirectly, over $1000 or more in compensation from the health plan. Savvy plan sponsors should already be asking brokers, consultants, third party administrators, and all other covered service providers to provide a robust fee disclosure whenever they enter a new contract for a group health plan. Evaluation of the reasonableness of these fees is also incumbent upon the plan fiduciary, and there are those non-conflicted entities that are prepared to assist in this financial oversight and accountability.”
https://4chealthsolutions.com/what-1-billion-in-401k-settlements-can-teach-health-plan-fiduciaries/
RiskManagers.us is a specialty company in the benefits market that, while not an insurance company, works directly with health entities, medical providers, and businesses to identify and develop cost effective benefits packages, emphasizing transparency and fairness in direct reimbursement compensation methods.
