Bloomberg Law | April 21, 2021
A core function of state insurance regulations is to ensure insurers have enough money to pay claims they’re obligated to pay on behalf of the policyholders. The reason ERISA plans aren’t regulated by states is because they’re offered by true employers that have every incentive to do right by their employees, said Katie Keith, a health law professor at Georgetown University. The companies here aren’t true employers, so “the same incentives aren’t there,” she said.