Status of self-funded governmental welfare (health) plans

[Dowist]

ERISA doesn't apply. State insurance laws don't apply (it's not insurance). COBRA, HIPAA, etc. do apply.

But is the basic law governing self-funded governmental plans simply state contract/state employment law (subject to the authority of the entity to establish such a plan)?

Are there other considerations?

[Guest CVCalhoun]

Basically, yes. However, you would also want to keep in mind any nondiscrimination rules, such as those which apply to cafeteria, flexible benefits, and pretax premium arrangements under Internal Revenue Code section 125.

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