NATION : Self-Funded Plans Free of States
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From Times Wire Services
WASHINGTON — Self-funded employee health care plans, which cover about 9.5 million working Americans, are not subject to state insurance laws and regulations, the Supreme Court ruled today.
The court, by a 7-1 vote, said in the case of a seriously injured Pennsylvania teen-age girl that federal regulation of such plans preempts any state regulation. Self-funded plans have benefits paid directly by an employer and not purchased through an independent insurance company.
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