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Insurance Agency Responsibility For Processing MSA Enrollments

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Question: 
We are an insurance agency selling for multiple carriers. We are also a Medical Savings Account administrator but not the custodial agent (we use banks for this). What is our responsibility as far as processing enrollments into the MSA program.
Answer: 

Your primary liability is under ERISA. As a fiduciary you must deal openly, honestly, and to the interest of your client and their employees. Further, HIPPA will soon apply to you as the holder and disseminator of healthcare information.

Many insurers offer a Fiduciary Responsibility Insurance Policy FRIP. That can address these exposures. The carriers can also be a source of loss prevention information.

You also have a professional liability exposure. Such may or may not be covered by your agents errors and omissions policy.

First published on BankersOnline.com 9/16/02

First published on 09/16/2002

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