Gayle Dax
May 25 1999, 02:54 AM
Is there a form or a formal notice that must be sent to the IRS/DOL when discontinuing a partially self-funded health plan and becoming fully insured?
KIP KRAUS
May 26 1999, 09:10 AM
Gayle:
Unless you have been funding the self-insured claims via a 501©(9)trust or some other type of fund, in my opinion changing from one financial arrangement to another does not require reporting to anyone. If you are dropping a vendor in favor of another vender, you simply inform the IRS via your 5500 report by completing the Schedule C, which informs them of vendor changes.
Greg Judd
May 26 1999, 11:20 AM
Gayle, I believe Kip's nailed this one.
It's a good question to post, because more than a few firms have traced this path over the past 3-4 years--and may soon re-trace it, as the managed care firms' mania to buy market share by swallowing costs has left many gasping for financial air.
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