Wrap Plan?

[Guest PBJ]

Hello!

A large company sponsors a self-insured medical plan. Company has promised (through various agreements) to provide certain retired employees and their dependents with medical insurance. The Company pays 50% of the premium the retirees pay 50% of the premium. For 2008, the Company is redesigning its medical plan to move post-age 65 retirees to a company-sponsored fully-insured plan. The benefits are similar (only minute differences) and the premium cost is lower.

My question is whether the company can wrap the fully-insured plan with the self-insured plan so that the health plan is one plan? So there is only one SPD, one Form 5500, etc.

Any help would be greatly appreciated. Thank you!!

[Ron Snyder]

The answer is yes. But it won't be any easier than separate documents, it will likely be harder. What advantage is derived from this? 1 SPD instead of 2 (but twice as big)? One 5500 instead of 2 (but insured plan filing is way easy anyway)? I would ask the ERISA attorney engaged to prepare the document(s) which way will be easier and simpler and go with that.