Question

true or false
1. Under federal law an employer may not self-insure employees for costs associated with hospital stays?

2. Health insurance companies must be licensed by the federal government?

Answer 1

1. True

Every employer is not required to provide the insurance to their employees related to hospital stays under the federal law. It is not a mandatory thing under the law. Most of the organisations provide such benefits to remain competitive in the market. Though, this is getting evoluted and the law requires most of the companies to provide health benefits to the employees but this isn’t applicable mandatorily to all the companies especially when we talk about the hospital stays particularly.

2. True

Health insurance covers the medical risks of a person including expenses related to life, injury, old age etc. It is mandatory for health insurance companies to be licensed or regulated by the federal government. It involves the public interest. The level of regulation is different in each and every state but there is always a minimum recognition that is required to be applicable in order to have their way in the consumer market. In some countries, even multiple departments have been made in order to ensure the best practices out of it.