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Reserve funds key to keeping health plans fiscally fit
David Blumenstein1, Jordan Smith
1Segal Company, San Francisco, USA.
Abstract:
To avoid an economic roller coaster ride, plan sponsors should establish an appropriate financial reserve during the good times to provide a safety net during the bad. Because no law expressly requires multiemployer health funds to maintain reserves, each fund's needs should be determined by its trustees, in consultation with professional advisors. This article explores the role of reserves in helping plans to prepare for various needs and contingencies.
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