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Fully Funded ERISA


ERISA plans are primarily governed by federal ERISA laws, which govern employee welfare plans.  ERISA establishes minimum standards for retirement, health and other welfare benefit plans.  ERISA plans do not have to follow state benefit mandates resulting in lower costs and expenses.

Fully Funded ERISA is a unique answer for smaller employers trying to save money on the cost of group health insurance.  A Fully Funded ERISA Plan allows you to save money by paying for the cost of small claims while providing you absolute financial protection if those claims grow larger.


Advantages of ERISA Plans

  • You don’t buy insurance for benefits that you don’t use.  Your client’s unused claims fund is theirs at the end of the plan year.
  • Stop Loss insurance fully protects you from larger claims.  You will never have to pay more than the maximum monthly cost.
  • The predictability of a level monthly cost – there are no extra charges to your client if they have high claims.
  • Your plan is an ERISA plan that is exempt from some of the new federal Affordable Care Act regulations – particularly those parts that may cause fully insured premiums to climb substantially in 2014.


Risks of ERISA Plans

With a Fully Funded ERISA Plan, your client’s only risk is that you won’t receive money back at the end of the plan year.  Each month, your payment helps to build up your clients claim fund after claims are paid for the plan year.