What Is Regulated Business?
Regulated business means that the business is licensed under one or more regulatory laws prescribed by a superior or competent authority governing the business’s actions.
As applicable and required, a regulated business has been certified, registered, or licensed by the authority in the area where the business operations are carried out. Various federal government departments and agencies issue regulations to carry out the intent of legislation passed by Congress.
Companies such as an insurance company, health maintenance organization, health care service plan, health care service contractor, health care services organization, preferred provider program administrator, preferred provider network, organized delivery system, utilization review organization, utilization review agent, utilization review company, private review agent, independent review organization, and provider of telephone medical advice are required to be certified, registered, and licensed.
Administrative agencies, informally known as “the bureaucracy,” perform many government duties, including rulemaking. Regulations produced by these agencies are to direct the action of individuals controlled by the agency, as well as the activity of the agency’s personnel. Regulations also assist in guaranteeing that the law is uniformly administered.
The United States government implements rules to safeguard employees’ rights and the environment. These policies also hold firms accountable for their societal power and impact. Extensive rules may either assist or hinder businesses. In any case, all enterprises are held to the same standards and must follow identical guidelines. This is to preserve public health and safety and promote fair market competition.
Several organizations, including the U.S. Small Business Administration (SBA) and the Chamber of Commerce, lobby for regulation change. The goal of this reform is to limit federal agency overreach and the cost of different compliance requirements.
Business rules are continuously changing, and business owners must stay up to speed on these changes to be compliant. To prevent falling behind, keep an eye on the federal and state authorities that oversee your unique business.
Regulated Business Example
If you have a company that has not been registered, certified, or licensed, it means that the authority does not regulate the company. But, when you register it, it becomes regulated, making it an entity controlled by the authority’s rules and regulations.« Back to Glossary Index