Frequently Asked Questions

The purpose of listing the contract number is merely to identify the insurance contract given by the insurer. Accordingly, this information only appears when a fully-insured benefit is selected. Typically if the plan is self-insured, there is no contract number, so this will not appear for self-insured benefits. However, should you wish to add a contract number, the Wrap SPD and Wrap Plan Document can either be customized in Microsoft Word, or you can add the contract number when entering the name of the particular benefit component plan.

The contract number is different from the plan number. The purpose of using a contract number is merely to identify the insurance contract—this number can be the contract number given by the TPA or carrier, or the policy number, as long as there is a unique identifier. It would be prudent to contact the carrier to obtain this unique identifier, or check the invoice for the insurance contract.

The plan number is a three-digit number assigned to a plan by the employer or plan sponsor and is used to identify a particular plan. According to the U.S. Department of Labor, welfare plan numbers begin with 501 and proceed consecutively (so, the second welfare plan of an employer would be 502, followed by 503, etc.), and a plan number can never be used more than once.  If this is an ongoing plan, refer to the prior document or SPD, or if applicable, the most recently filed Form 5500.

In situations where there are a number of benefit plans, each with their own separate plan numbers, that you wish to wrap together into a single Welfare Benefit Plan, there are typically two options. One option would be to merge all of the coverages into a single existing plan and terminate the benefit plan numbers of those being merged into the single existing plan. Or you could simply start a new plan with a new plan number and potentially terminate the existing plan numbers. According to the U.S. Department of Labor, welfare plan numbers begin with 501 and proceed consecutively (so, the second welfare plan of an employer would be 502, followed by 503, etc.), and a plan number can never be used more than once.

The employer/plan administrator should note that proper procedures for terminating its existing plan or plans (which could involve some corporate paperwork that addresses the plan numbers that have been terminated), and for filing terminal Form 5500s (if applicable), would have to be followed. Please consult knowledgeable benefits counsel or the party responsible for filing Form 5500s for individualized guidance regarding these procedures, as Wrap360 cannot offer legal advice.