Fully funded insurance policies are private insurance policies, and are state regulated. Employer policies are either Fully Funded or Self-Funded, and an employee can inquire with their HR Department as to how their insurance is funded.
Private insurance policies where the employer “self-funds” the claims, and the insurance company acts as a third party administrator to process claims. Self-funded policies are regulated by a Federal Law, the Employee Retirement Income Security Act (ERISA), and are sometimes called “ERISA plans”. Because they are federally regulated plans, they are not required to comply with state laws, such as ARICA. Employer policies are either Self-funded or Fully Funded, and an employee can inquire with their HR Department as to how their insurance is funded.