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Guide to Employment Law. Currently, there is no federal law mandating employers to provide employees with health insurance coverage, and many states do not require employers to provide it or any other health coverage.
Although self-insured plans are frequently administered by an insurance company, it is the employer and not the insurance company that bears the risk for paying claims. Federal law exempts self-insured employer plans from state insurance regulation. The same is true of health & welfare benefit plans (union plans).