Which law exempts self-insured health plans from state laws governing health insurance?

The Employee Retirement Income Security Act (ERISA) is the law that exempts self-insured health plans from state laws governing health insurance. This federal law provides regulations for employee benefit plans, including self-funded health plans, ensuring that these plans are primarily governed by federal standards rather than state regulations. This preemption allows employers to offer consistent health benefits across different states without being subject to varying state laws, which could complicate administration and compliance.

The significance of this exemption lies in the ability of employers to maintain control over their health benefit offerings and to manage costs effectively. By being governed by ERISA, self-insured plans are protected from the diversity of state regulations that apply to fully insured plans, thereby streamlining compliance and reducing administrative burdens.

Other laws mentioned, such as the Health Information Technology for Economic and Clinical Health (HITECH) Act, the American Recovery and Reinvestment Act (ARRA), and the Affordable Care Act (ACA), focus on different aspects of healthcare policy and do not provide the same blanket exemption for self-insured health plans in relation to state laws governing health insurance.