What is a Limited Data Partnership?
A limited data partnership (LDP) is an organization consisting of two types of partners: general partners and limited partners. There is at least one general partner (a data company) in a limited partnership who is responsible for the day-to-day management of the business. Limited partners limit their liability to their investment in the partnership while still benefiting monetarily from the growth of the business.
The LDP is an employer and as such may have a group health plan of which it is the plan sponsor. Only common law employees and working owners (i.e. active limited partners) are eligible to participate in a group health plan.
Plan Designs Built For Limited Data Partnerships
ABC services a wide array of plan designs, consulting on features and implications of the decisions set by different plan sponsor clients for the particular needs of their own business and personnel. Some of these designs have more traditional features of the average health plan. Others take an alternative approach that has increased in popularity over the past decade.
For instance, ABC consults on a suite of Minimum Essential Coverage (MEC) plan designs that cover all the bases for preventive and wellness services for the plan participants of LDPs. MEC is a standard set by the Affordable Care Act (ACA) that impacts many group health plans, and the benefit requirements of all group health plans must meet certain minimums to comply with ACA. MEC plan designs are set to provide complete coverage for the preventive and wellness benefits as the ACA (and other subsequent acts of Congress have or may) designates. These plan designs are not meant to be a substitute for Affordable Care Act (ACA) exchange plans (or “qualified health plans,” as ACA defines that term).
Regardless of the design, ABC’s services for group health plans include:
- 1095 reporting
- Escalated customer service
- ID cards
- Network recommendations and contracting assistance
- Plan documents
- Summaries of benefits and coverage
- Vendor coordination services, including referrals to key vendors such as claims adjudication services
What is ERISA Compliance?
ERISA is separate from the ACA. ERISA applies to any employer regardless of size that offers benefits to their employees (generally, only government entities and churches are exempt). ERISA compliance involves a complex and evolving framework of regulation overseen by the U.S. Department of Labor. ABC provides support for this challenging area to the LDP client so it can focus on its core business purpose instead of also needing to act as a benefits company.
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