“Limited Partner” Health Plans Raise Concerns For State Regulators

Montana state insurance regulators recently raised a red flag about the increasing availability of self-insured limited partner health plans. As consumers seek relief from the skyrocketing costs of major medical insurance plans, limited partner health plans are rising in popularity, with Montana reporting that at least 12 companies now offer them in the state.

Individuals who purchase these plans pay to be classified as employees or limited partners of a company, but they do little or no actual work for the company. Companies offering these plans describe them as self-insured health coverage backed by stop-loss insurance. These plans fall under the jurisdiction of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA).