Small hospitalization plan and filing exemption

P/OPINION 76-115

                                               3(1)


                    October 30, 1976


Dear          :

This is in response to your letter dated August 21, 1975,
requesting a determination whether the Hospitalization
Plan of (named), Inc., (Plan) is required to file Form
EBS-1 under the Employee Retirement Income Security Act of
1974 (ERISA). I am sorry we were unable to reply sooner.

The Plan covers sixteen employees and is funded through a
group contract with (named). Some of the employees make
contributions toward the family policy.

Section 3(1) of the ERISA includes in its definition of
an "employee welfare benefit plan" any plan, fund, or
program established or maintained by an employer to the
extent that such plan was established or is maintained for
the purpose of providing medical, surgical or hospital
care benefits for its participants or their beneficiaries,
through the purchase of insurance or otherwise. The Plan,
therefore, is an employee welfare benefit plan within the
meaning of section 3(1).

However, a regulation issued on August 15, 1975, by the
Department provides a limited exemption for certain small
welfare plans covering fewer than 100 participants.
There is insufficient information in your letter to
determine if the Plan meets the requirements for this
limited exemption. Section 2520.104-20 of the enclosed
regulation describes the scope, application and
limitations of this exemption.

I am also enclosing a Form EBS-1 should the Plan not be
qualified for this limited exemption.

Sincerely,