The federal law adopted in 1974 in response to fraud and mismanagement of employee pension funds and benefit plans. ERISA, among other things, preempts state regulation of health benefit plans offered by self-insured employers. It does not preempt state laws that regulate insurance – a highly litigated distinction. ERISA offers remedies tor improper denial of health benefits, but regulates in a way not as pervasive as state regulation. Prior to ERISA, nearly all employees received health benefits through purchased insurance, but by 1991, 40% of employees worked for partially or fully self-insured employers. Employers who directly contract with providers assert that these relationships are not subject to state regulation because they fall within the broad ERISA preemption. Insurance regulators argue that employers who contract with providers on a capitated basis are essentially providing insurance and should be regulated at the state level. ERISA is codified at 29 U.S.C.A. §§ 1001-1461.