Courts rule on when insurance plans are covered by ERISA - and when they're not

Article Abstract:

Two recent court rulings have stipulated the circumstances when a welfare benefit plan falls under the ERISA (Employee Retirement Income Security Act). Group health insurance was held not subject to ERISA while group insurance plan was held subject to it. Furthermore, if an employer merely purchased insurance, collected premiums and submitted claims, it has not made an ERISA plan. Employers should not act in a way that endorses the program so as to avoid fiduciary liability.

Occupational health services

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Letter agreement promising benefits covered under ERISA

Article Abstract:

Agreements contracted at the time of an employee's retirement which provide for retirement income inclusive of other plan benefits constitute an ERISA pension plan. The law mandates that the presence of intended benefits, a class of beneficiaries, financing and administrative procedures place an agreement under its coverage. Thus, retirement contracts stipulating additional benefits for a single individual still fall under ERISA regulations.

Retirement income, Retirement benefits

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Employer cannot cancel spouse's COBRA coverage

Article Abstract:

The Supreme Court has rejected the 'significant gap' approach to defending cancellation of Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) coverage. The ruling should prompt employers to carefully review employee coverage plans as the Supreme Court cites the approach as plagued with difficulties and cannot be used to defend cancellation of employee coverage.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Insurance Regulation, Employee benefits, Insurance law

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