Most types of insurance - including life insurance, property & casualty insurance, and individual health insurance policies – are regulated at the state level. This means that each state makes the laws and regulations that insurance companies must follow when doing business in that state.
Job-based group health coverage, however, is regulated by the federal government. This means that everybody in the U.S. who gets their health insurance through their job enjoys the same rights and protections. These protections have been established through a series of federal statutes.
ERISA
Back in 1974, Congress enacted the Employee Retirement Income Security Act, or ERISA. ERISA regulates all types of employee benefits, including pensions, retirement plans, and job-based group health insurance plans.
Because of ERISA, all employees covered under job-based health insurance plans have the right to disclosure of certain health plan information. Health plan administrators must offer enrollees information about the plan, including plan rules, financial information, and documents on the operation and management of the plan.
Read on for information about COBRA on the next page.
