The moment the employer signs such contracts, they are most likely already in violation of ERISA.
In response to relentless increases in healthcare costs and broker despair, insurance carriers, MGAs, TPAs, and consultants are encouraging employers of all sizes to self-insure their health plans. For the right-fit employer, doing so can provide an opportunity to reduce costs, but agents and brokers should be aware that self-insurance isn’t a magic bullet. There are several reasons why these plans can be problematic for both employers and their employees.
What Are the Fiduciary Risks of Self-Funded Health Plans?
