Medical Insurance: What is Medical Insurance Administration? - Legislation

Legislation - Over the years, administering medical insurance has become heavily scrutinized by the government.

There are federal regulations and state regulations that govern how insurance administrators can treat the money you have paid to the fund.

There are regulations governing employers, and whether or not the employers are required to contract with an insurance administrator on your behalf.

Insurance administrators are constantly looking for a better way to keep the cost of medical coverage low, to keep you and your employer for having to pay high contributions to the fund.

The cost of administration includes the medical care costs and the costs to administer the insurance plan.

For more information on how the government has regulated insurance for your protection, you may wish to read about ERISA. The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. www.dol.gov/dol/topic/health-plans/erisa.htm