Total Articles: 2
Department of Labor Proposes New Rules Affecting Multiple Employer Welfare Arrangements
Multiple Employer Welfare Arrangements (MEWAs) are typically utilized by smaller employers as an alternative to other traditional forms of health insurance. In 2010, the Affordable Care Act amended ERISA to address certain perceived regulatory issues with respect to MEWAs. On Monday, December 5, 2011, the Department of Labor published proposed rules and regulations that clarify these changes to ERISA. The changes concern (1) the Secretary of Labor’s ability to issue “cease and desist” and “summary seizure” orders, and (2) the reporting and disclosure requirements for MEWAs.
Department of Labor Advises Professional Organization Plans Are MEWA's.
In a recent information letter to the Attorney General of the State of Nevada, the Department of Labor (DOL) has advised that a health care plan maintained by a professional employer organization (PEO), that covers employees of the PEO's client companies, is a multiple employer welfare arrangement (MEWA). The DOL reached this conclusion even though, under the terms of the arrangement between the PEO and its clients, the employees were "shared" by the PEO and its client employers, and even though the PEO was a "co-employer" of the employees for various statutory purposes.
