What is “EASE”?
- “ERISA Alliance Serving Everyone”
- A registered non-profit organization that promotes expanded access to group benefit plans governed by a federal law known as “ERISA”
- Low-cost, high-quality group benefits plans endorsed by the EASE Alliance
- A choice that many people make for their health coverage, but some government bureaucrats want to take away
What is ERISA?
The Employee Retirement Income Security Act of 1974, which is overseen by the US Department of Labor (DOL). Most people already get their health coverage through ERISA group plans, and EASE thinks everyone who wants - or needs - lower-cost, user-friendly group coverage should have the right to choose it.
What’s so great about ERISA plans?
The Patient Protection and Affordable Care Act of 2010, commonly known as “ACA” or “Obamacare,” placed extensive new legal requirements on individual health insurance. These requirements (and other factors) caused the cost of coverage to skyrocket, but ACA’s negative effects have been disguised by two factors: 1) the federal government gives out many billions of dollars every year in premium subsidies, making expensive health coverage essentially free for over 20 million people (a major contributor to inflation and federal budget deficits); and 2) most - more than 160 million - working-age Americans get their coverage through ERISA plans, which are largely exempt from ACA rules and can therefore be less expensive and more useful. But if neither of those apply to you - you don’t qualify for subsidies, and you don’t have traditional access to an ERISA plan, you might consider an EASE plan.
Why wouldn’t I qualify for a traditional ERISA plan?
ERISA plans are group coverage typically “sponsored” by employers or labor unions. (That doesn’t necessarily mean that sponsors pay the full cost of coverage, and in fact very few do.) But unless you have a traditional employment arrangement - meaning that you receive a W-2 paycheck - then you probably don’t qualify for a traditional ERISA plan. Millions of people who work as independent contractors, or are part of the growing “gig economy” - truck and ride share drivers, realtors, self-employed and freelance workers of all kinds - are not considered employees, and are ineligible for ERISA plans. Or at least they were, until EASE came along.
How does EASE make everyone eligible for ERISA plans?
ERISA lets partners in partnerships be treated as employees for purposes of benefit plan eligibility. In 2018, the creators of EASE joined forces with several companies that collect electronic (computer and smartphone) user data from individuals who agree to share it. This data can be extremely valuable - some of the biggest and most profitable companies in the world, including Google, Amazon, and Meta (Facebook, Instagram, etc.) are built on data. Since that value is created by users, they should get more in return than “free” accounts and lots of ads. EASE helped several startup “Own Your Data” companies create limited partnerships, in which everyone contributes a portion of their electronic user data, along with the time and effort required to generate it. When that data generates profits, all partners share in it. According to the law and the courts, that makes them “working owners,” and entitled to participate in ERISA plans sponsored by the data sharing partnership.
How does the government feel about EASE?
The EASE creators brought their idea to the Department of Labor in 2018, and the first officials they met with were very positive. But later, some career DOL bureaucrats decided they didn’t like EASE, and refused to approve it. Several companies sponsoring EASE plans sued DOL in federal court, and won. The DOL appealed, and EASE won again. But the DOL hasn’t stopped fighting, and because the courts have blocked them from attacking EASE itself, they have starting making false accusations against some of the companies that provide needed services to EASE plans. The fight between EASE, its supporters, and the government is likely to go on for years - but that’s their problem, not yours.
Can anyone sponsor an EASE plan?
As of now, no. Only limited partnerships that are managed by LP Management Services (LPMS), one of the companies that sued the DOL and won, are protected by the court decisions. The EASE Alliance has been trying to work with the DOL for years to expand ERISA access to everyone who needs it, while also safeguarding against abusive companies and practices, and will continue to do so. Unfortunately, the DOL has so far shown no willingness to cooperate - which is why users of EASE were forced to turn to the courts for protection.
What about other health plans that call themselves partnerships?
Many copycats appeared after EASE won against DOL in court. The benefits in these plans range from limited to nonexistent. What they all have in common is that they lack legal protection, which applies only to partnerships managed by LPMS. State Departments of Insurance have taken actions against many of these copycats, and we anticipate they will continue to do so.
How do EASE plans compare to ACA exchange plans?
EASE plans are more cost-effective than individual plans on the ACA exchanges because they use the flexibility of group health to give each participant the coverage they need - no more, no less. The two most important ways that EASE plans save money are:
- Don’t make people pay for more coverage than they want or need. The Affordable Care Act actually made health coverage unaffordable for millions of people, by imposing “one-size-fits-all” requirements on those who don’t have access to more flexible ERISA plans. EASE lets everyone choose for themselves.
- Don’t let healthcare providers hide their fees, or confuse people. EASE plans use sophisticated Artificial Intelligence tools to give participants the facts they need - clearly and simply - to make the best choices about where to find the care they need, at prices they can afford.