|
Subscribe to E-mail Updates
|
|
Print This Page 
Text Size
E-mail This Page
Archived News Release — Caution: Information may be out of date.
U.S. DEPARTMENT OF
LABOR
LABOR DEPARTMENT EXTENDS COMMENT PERIOD FOR
PROPOSED RULE TO CURB MISUSE OF HEALTH PLANS
Wed., November 22, 1995
For more information call: (202) 219-8921.
The U.S. Department of Labor today extended the comment period through Dec. 18 for a proposal clarifying when an employee benefit plan is a collectively bargained arrangement exempt from state regulation.
The proposed rule is intended to help alleviate an ongoing problem created by operators of certain health plans wrongly claiming to be exempt from state regulation. By claiming to be exempt, operators avoid having to comply with state laws requiring adequate funding and other safeguards. As a result, these plans have run out of money and workers have been burdened with unpaid claims for health care expenses they believed were insured.
The Employee Retirement Income Security Act (ERISA) exempts from state regulation certain welfare plans when they are established and maintained under collective bargaining agreements. Congress amended ERISA in 1983 to make clear that certain plans constitute multiple employer welfare arrangements (MEWA's), as defined in the statute, and are subject to state insurance regulation. The 1983 amendments also provided an exception from state regulation for collectively bargained plans.
The department's proposal clarifies the scope of the exception from the MEWA definition for plans maintained under collective bargaining agreements. The proposed rule provides criteria that will distinguish ERISA-covered health benefit arrangements maintained by legitimate unions under bona fide collective bargaining agreements from health insurance arrangements that are subject to state insurance regulation.
Written comments from the public should be submitted prior to Dec. 18 to the PWBA, U.S. Department of Labor, 200 Constitution Ave., N.W., Room N-5669, Washington D.C. 20210, Attention: Proposed Regulation Under Section 3(40).
The notice is scheduled to be published in the Federal Register today.
Archived News Release — Caution: Information may be out of date.
 |
