Health Benefits Advisor for Employers

Excepted Benefits

There are certain benefits, called excepted benefits, which may not be subject to certain requirements of ERISA.

There are several types of excepted benefits.

• Certain benefits are always treated as excepted benefits because they are not considered health coverage, such as:
  • Accident Only
  • Disability Income Insurance
  • Workers' Compensation
• Other benefits are treated as excepted benefits if they are offered separately or are not an integral part of the plan, including:
  • Limited-Scope Dental or Vision
  • Long-Term Care Benefits
• Moreover, other benefits are treated as excepted benefits if they are offered separately and not coordinated with benefits under another group health plan, including:
  • Coverage for a Specific Disease
  • Hospital Indemnity or Other Fixed Indemnity
• Finally, other benefits are treated as excepted benefits if they are offered as a separate insurance policy and supplemental to Medicare, Armed Forces health care coverage, or (in very limited circumstances) group health plan coverage.

Does your plan offer only excepted benefits?

• Yes
• No
• I don't know