Sponsor (Health Care) Law and Legal Definition
Sponsor in the context of health care means an employer ,a union, a company or some other entity that sets up and sponsors a health care plan or a retirement plan such as employer-sponsored group disability policy, accident insurance, 401(k) plan for the benefit of organization's employees. A sponsor will decide the parameters for taking membership in a plan and the investment choices. Sometimes a sponsor will even make contribution payments in the form of cash or stock. A sponsor is also called a plan sponsor. A sponsor who offers a prescription drug plan is called a prescription drug plan (PDP) sponsor.
A sponsor is organized and licensed under state law as a risk-bearing entity eligible to offer health insurance or health benefits coverage in each state in which it offers a prescription drug plan [42 USCS § 1395w-112].
Legal Definition list
Related Legal Terms
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- Accumulation Value (Health Care)
- Actual Age (Health Care)
- Actuarial Equivalent (Health Care)
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- Additional Health Services
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- Adoption and Foster Care Analysis and Reporting System (AFCARS)