ERISA and MN Small Group Health InsuranceMN Health Staff Writer | February 29, 2016
Many small employers believe the Employee Retirement Income Security Act (ERISA) only affects large businesses or retirement plans. That is, however, not the case. ERISA affects small businesses as well, and possible fines can be levied against small businesses not in compliance.
How does a small business offering health insurance in MN comply with ERISA? A small businesses needs to have a Plan Document and a Summary Plan Description (SPD). These documents contain the rights and benefits of the participants under the welfare benefit plan, including eligibility, HIPAA notifications, funding of the benefits and many other legal provisions applicable to the plan. Not being compliant with ERISA can result in $100 per day per employee fines, audits and other legal complications.
Chances are good that small businesses do not have in-house attorneys to create these documents for them. That is why Third Party Administrators (TPAs) are so important for compliance. TPAs will draft these documents to ensure compliance with ERISA. Market costs for these documents range from $1,300 - $3,000 annually.
MNHI.Net has negotiated a bundle compliance package with a local TPA that includes ERISA compliance, COBRA Administration and Section 125 compliance for a total annual fee of $1,000. Additionally, your employees will have access to the SPD and Plan Documents – in accordance with ERISA’s distribution requirements – via their own complimentary HRIS portal.
At MNHI.Net, we make insurance and compliance affordable and easy! If you would like to talk to someone about the compliance bundle package, call MNHI at 952-224-0123 and ask to speak to a small group insurance broker.
You can also enter your company’s information at our website to have a broker contact you: MN Employer Group Health Insurance Quotes
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