ERISA Fiduciary Obligations
Plan sponsors need to meet ERISA fiduciary requirements when managing their group health plan. They have wide latitude in designing plans to best meet the needs of both parties: the plan sponsor and plan participants.
Plans must be administered in the best interest of plan participants and fiduciaries must act prudently in selecting plan vendors, including Global Health Care providers. In addition, the vendor selection process and decision-making should be fully documented.
Plan sponsors and employers should take steps to limit any potential fiduciary liability by conducting an initial investigation of the credentials and qualifications of the vendors and providers as part of a competitive selection process and continue to monitor the vendor and providers on an ongoing basis. If a disgruntled employee sues the plan creator, sponsor, or employer it can defend itself by demonstrating the careful selection conducted on each vendor.