Multiple Employer Welfare Arrangement (MEWA)
Candlefocus EditorA MEWA plan is professionally managed and regulated by the states or the federal government. Unlike traditional group health plans, MEWAs are not subject to some of the requirements of the Employee Retirement Income Security Act of 1974 (ERISA). However, this does not mean that MEWAs do not provide adequate coverage. MEWAs can offer coverage that is as extensive as a traditional group health plan.
It should be noted that MEWAs are not health maintenance organizations (HMOs). HMOs are health care plans that limit access to certain providers and offer care only within the provider network. MEWAs, however, are not limited to a specific provider and generally do not restrict access to specific levels of care.
Due to the larger pool of employers contributing to the plan, MEWAs are generally able to offer their members lower premiums and out of pocket expenses than traditional insurance plans. They are also able to provide more comprehensive coverage as the variety of employers reduce the risk of losses for the plan.
MEWAs are a great option for employers who do not have the resources or ability to provide their employees with comprehensive health coverage. Since MEWAs are becoming increasingly popular, it is important for employers to understand the potential risks and benefits associated with this type of health plan.
Employers should also be aware that the regulations surrounding MEWAs can be complex, and that it is important for employers to remain compliant with applicable laws and regulations. It is also important for employers to be aware of the financial strength of their particular MEWA as well as the complaints filed against the MEWA company.
Overall, MEWAs are a beneficial option for employers looking to provide their employees with affordable health care coverage. They are an attractive alternative to traditional group health plans, as they offer a lower premium cost while still providing comprehensive coverage. Employers should understand the risks associated with MEWA plans, as well as their responsibilities, in order to ensure a successful health care plan.