NJTMANew Jersey Tooling & Manufacturing Association
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We found an attorney with ERISA experience and took steps to establish NJTMA Employee Benefits Association (NJTMA-EBA) as a self-funded plan.
NJTMA-EBA had its own board of trustees, elected from and by NJTMA's board of directors.
The third-party administrator was responsible for soliciting NJTMA member companies and prospective members to join the health plan; processing claims; arranging for stop-loss insurance; writing and maintaining the plan's benefits (described in a summary plan description); providing term life insurance; administering COBRA (the federal requirement that employers allow departed workers to buy medical benefits for a certain period); and billing our members for the monthly contributions (premiums) into the benefit fund.
Two years after the self-funded plan was set up, I was hired as NJTMA's executive director, with instructions not to become involved with the health plan.