Subrogating Fully-Insured ERISA and Non-ERISA Employee Welfare Benefit Plans
Elizabeth A. Co of Matthiesen, Wickert & Lehrer, S.C.
Two types of ERISA plans exist, the ?self-funded" or "unfunded" plan. If a plan is "self-funded", the employer pays the benefits directly through its general assets or through a trust fund established for that purpose. If a plan is "fully-insured", on the other hand, the employer does not pay the benefits, but rather, the employer purchases an insurance policy via the plan, and an insurance company pays the losses.