Health-related benefits are a major concern for many people. And health benefits provided by an employer have for some time been a somewhat common piece of the average business's compensation package. Federal laws govern an employee's rights in regard to health benefits.
Facts
According to the Department of Labor, the Employee Retirement Income Security Act of 1974 (ERISA) is the federal law that sets the minimum standards for retirement and health benefit plans for private industry. It requires that plan managers and fiduciaries meet certain standards of conduct. Also it contains provisions for participant disclosure and government reporting. In addition, it provides assurances that plan funds are protected and that qualified participant receive their benefits.
Significance
Even though the practice of providing health benefits to their employees is fairly common, employers are under no requirement by law to do so. But once health benefits are provided, the health-plan enforcement regulations and federal anti-discrimination laws ensure the protection of rights for those employees under health plans. This includes medical, dental, disability and life insurance plans.
Function
The two main functions of employee health regulations are the assurance that anti-discrimination is practiced and that ERISA and general health insurance rights are enforced. Health-benefits coverage cannot be made on the basis of the employee or her dependent's gender, race, age, nationality, religion or disability. And if an employer decides to offer a health-benefits plan, they must run it in accordance with the standards outlined in the ERISA.
Considerations
Employee health regulation, like most forms of regulation, has its own path of evolution over time. Several significant amendments have been made to it. One is the Consolidation Omnibus Budget Reconciliation Act (COBRA) of 1985, which provides some employees with the right to continue their coverage under an employer-sponsored group health plan after termination. Another is the Health Insurance Portability and Accountability Act (HIPAA) of 1996, which prohibits a plan from refusing to cover an employee with a pre-existing medical condition.
Warning
According to the National Coalition on Health Care, the total cost for employers could reach nearly $850 billion by 2019. The rising cost of health care has made it difficult for employers to continue to provide health coverage. Since ERISA does not require employers to provide health-related benefits, this may leave many employees with no health-related benefits at their workplaces.
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