elf-insured ERISA plans routinely contend that they are not subject to state mandates because of the impact of ERISA preemption.Â However, employers sponsoring these plans should be aware of the mandates of the jurisdiction where they operate if for no other reason then to evaluate the effect of their own plan in comparison to others offered (particularly union sponsored plans if union avoidance is a concern).
Keith R. McMurdy has some interesting comments on state insurance benefit mandates.
Inasmuch as these mandates are typically implemented by requirements for policy form approval, they should not affect self-funded ERISA exempt plans.Â And, of course, ERISA preempts the mandates as to self-funded ERISA plans by operation of the deemer clause which negates the preemption savings clause in such instances.
Nonetheless, Keith notes that self-funded ERISA plan sponsors may have reason to evaluate the mandates for purposes of benefit comparisons.
He cites to a very useful compendium of state law mandates compiled by the Council for Affordable Health Insurance.Â The 2008 catalog of state mandates may be accessed here.
HT to Keith McMurdy.