DOL Targets Fraudulent Group Insurance Plans

Law360, New York (December 5, 2011, 5:31 PM EST) -- The U.S. Department of Labor has issued proposed new rules designed to prevent fraud and protect groups of separate employers who pool their health care contributions in a benefits plan for their workers, the department said Monday.

The new rules target Multiple Employer Welfare Arrangements, which are used to offer health coverage to employees of two or more employers or self-employed individuals, and are usually marketed to small businesses as a low-cost alternative to traditional health insurance plans, the Labor Department says.

The proposed rules would...
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