Employee Retirement Income Security Act

The Employee Retirement Income Security Act of 1974, or ERISA, is a federal law that exempts self-funded health and other benefit plans (employer and union) from state jurisdiction. These benefit plans are governed by the U.S. Department of Labor. Seven out of ten U.S. employees are in self-insured plans.

The ERISA law allows self-insured benefit plans to avoid paying premium taxes to the states. The U.S. Department of Labor requires that these plans provide an explanation of benefits to members, and if a claim is denied, explain why the claim was denied and inform the individual of his or her rights to appeal.

For more information on ERISA, visit the Department of Labor Web site at www.dol.gov.