Which statement about self-insured health plans is correct?

Self-insured health plans are an arrangement where the employer takes on the financial risk of providing health care benefits to its employees. One common misconception is that self-insured plans avoid all state insurance regulations. In reality, while it is true that self-insured plans are not subject to the same degree of regulation as fully-insured plans, they are still subject to certain federal laws, such as the Employee Retirement Income Security Act (ERISA).

Employers offering self-insured plans must comply with ERISA requirements, which pertain to the reporting and disclosure of health plan information. This ensures transparency and provides protections for employees. Additionally, the plans must comply with other federal regulations like the Affordable Care Act (ACA). This makes it clear that while state regulations may not apply directly, self-insured plans are not exempt from all regulatory compliance.

The other statements presented about self-insured plans can be misleading. For example, while a significant number of larger employers may utilize self-insured arrangements, the statement about the majority of workers being in such plans does not reflect the broader picture, as many smaller companies may still prefer fully insured options. The assertion that third-party administrators are often not used is incorrect, as many employers utilize these services to manage the self-ins