There is no state law requiring employers to offer group healthcare insurance to their employees, but most employers do provide this benefit. However, if any healthcare insurance is offered, Utah's insurance laws require group insurance policies to cover certain benefits (mandated benefits) and give employees the right to continue group coverage in certain circumstances if group coverage is lost. There is information about continuation requirements.
Self-insurance exception. Under federal law, states are not allowed to regulate self-insured benefit plans. Utah's mandated benefits, managed care, network, continuation, and conversion provisions do not apply to health plans in which the employer pays benefits without the proceeds of any insurance policy. An employer's health plan is self-insured if the risk of paying claims is on the employer and not on an insurance company. Self-insured plans may contract with third-party administrators (TPAs), including insurance companies, to process benefit claims. The TPA pays the claims and is then reimbursed by the employer. Many self-insured plans also buy “stop-loss” insurance to cover very large claims. The purchase of stop-loss insurance does not result in the loss of self-insured status and the exemption from state regulation.