California Life and Health Insurance Practice Exam

Which act regulates the disclosure and reporting in group health insurance?

1. Health Insurance Portability and Accountability Act (HIPAA)

2. Employee Retirement Security Act of 1974 (ERISA)

3. Affordable Care Act (ACA)

4. Consolidated Omnibus Budget Reconciliation Act (COBRA)

The correct answer is: Employee Retirement Security Act of 1974 (ERISA)

The Employee Retirement Income Security Act of 1974 (ERISA) is the correct answer because it establishes standards for the administration of employer-sponsored health benefit plans, including group health insurance. ERISA governs the disclosure and reporting requirements for these health plans, ensuring that participants receive essential information about their benefits and the plan’s operations. This includes mandates for providing summary plan descriptions, annual reports, and various notices to participants, which promote transparency and accountability in the management of health insurance policies. In contrast, the other acts primarily address different aspects of health insurance. The Health Insurance Portability and Accountability Act (HIPAA) focuses on the privacy and security of health information rather than the reporting and disclosure in group health insurance plans. The Affordable Care Act (ACA) includes provisions aimed at improving health care coverage and affordability, but it does not specifically regulate the disclosure and reporting mechanisms for group insurance plans like ERISA does. Lastly, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals to continue their group health insurance coverage after certain qualifying events but does not impose the same comprehensive disclosure and reporting standards defined by ERISA.