Health plan sponsorship carries big costs and big liability risks if not properly handled. Many businesses already face potentially huge excise taxes because their health plans violated health care reform or other federal mandates. Paying these bills will be particularly frustrating for employers who relied to their detriment on their brokers, consultants or other vendors to design, draft or administer the plan, only to find that it is the employer, as sponsor or the named “plan administrator,” “named fiduciary,” or sponsor that pays the bill.
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