Employee Assistance Programs And State Insurance Regulation Structuring EAPs To Ensure Compliance

Employee Assistance Programs (or EAPs) have served employers and their employees for decades, providing a variety of benefits to address issues that might otherwise adversely affect the overall health and work of employees. A National Study of Employers conducted in 2008 found that 65 percent of employers in the United States provided EAP benefits, an increase of 9 percent from the same study conducted in 1998, with 97 percent of employers with over 5,000 employees and 80 percent of employers with 1,001 to 5,000 employees having EAPs.¹

Due to the varying services and pricing options provided by EAPs, it can be difficult to structure an EAP to ensure compliance with applicable state laws and/or regulations. This article provides an overview of various state insurance regulatory issues that EAP providers may want to consider when structuring an EAP.²