Are you wondering about multiple employer welfare arrangements and if they make sense for you? It can be difficult to understand MEWA, but you don’t have to go it alone.
Trying to understand MEWA on your own can be overwhelming and confusing. We are here to help. Our guide will give you all the information you need to understand MEWA and how they work.
Read on for more details:
What is MEWA?
MEWAs are otherwise known as Multiple Employer Welfare Arrangements. These are health plans that cover employees of two or more employers.
A group health insurance plan is when a business pays for some or all of its employees’ health insurance. This type of plan also gives employees more flexible payment options.
MEWAs can offer lower prices for their services than other traditional plans. They can also provide a good solution for those who may have trouble finding coverage through more standard methods.
It is important to be aware of potential risks when signing up for a MEWA under ERISA (Employment Retirement Income Security Act 1974), however, the benefits far outweigh the risks in most cases.
Ask Plenty of Questions
It is important to ask plenty of questions before signing up for a MEWA plan. Make sure you know all the details, such as who is responsible for administering the plan and potential restrictions or limitations on coverage.
You will also want to find out how claims are processed and what type of customer service is available if you have any issues or questions about your plan.
Being well-informed can help ensure that MEWA small business health plans work best for your needs now and in the future.
Take Time to Research
Taking the time to thoroughly research MEWAs is beneficial for small businesses looking for a cost-effective health plan. Understanding MEWAs is important because all plans are different.
They each come with their own benefits, risks, and pricing options.
It may require extra effort but having the necessary knowledge will help you make an educated decision about the MEWA that best fits the needs of your business.
With a deep understanding of MEWAs, you can be assured that your employees receive quality health coverage while also keeping costs lower.
Be Prepared for Disputes
Although it doesn’t happen often, disputes can arise between employers and employees participating in a MEWA plan. Knowing what steps you can take to protect yourself in these situations is key.
If a dispute arises, ensure that you are aware of any deadlines or guidelines needed to resolve it quickly and efficiently.
It’s also important to understand if there is any legal recourse available if you feel wronged or challenged under a MEWA plan – in some cases, you may not.
Is There an Appeals Process?
it’s important to find out if there is an appeals process for MEWA plans. This could be invaluable should you ever need to dispute a claim or have any other concerns with the plan.
Understanding how to access this process can help ensure that you get the best coverage and service possible from your MEWA plan.
So let’s dig deeper into the pros and cons:
Here is a list of the pros of MEWA plans:
1. Access to Coverage That Might Not Be Available for Individuals
MEWAs (Multiple Employer Welfare Arrangements) are an increasingly popular way for small businesses to get access to group health insurance coverage for their small employer health plans.
MEWAs can offer companies a cost-effective alternative that wouldn’t otherwise be available through traditional group plans, helping employers obtain much-needed coverage for their employees.
All of this without breaking the bank. MEWAs provide an alternative for both employers and employees who might not have been able to purchase adequate health insurance without joining a MEWA plan.
For small businesses with limited resources, MEWA plans can be a great way to make sure their employees get the care they need at an affordable price.
2. Potential Cost Savings
With the help of MEWAs, employers can benefit both staff and their own bottom line. An employer working through a MEWA can typically access better rates for healthcare due to the larger membership size.
This potentially allows them to cut costs on medical needs for their employees.
For businesses looking to increase benefits without breaking their budget, aligning with a MEWA is an excellent option that will give them purchasing power without sacrificing coverage.
3. More Choice in Plan Design and Benefits
By joining a Multiple Employer Welfare Arrangement (MEWA), employers have the opportunity to design plans that give employees better coverage and more choices for health benefits.
These are not the same plans available in traditional group insurance markets, as they are customized specifically to fit the unique demands of the employer’s needs.
MEWAs can provide a wider variety of options – including alternative therapies, dietician services, psychiatric care, and long-term care options – that are often not available through large insurance companies.
This means that employers get greater control over their health benefits plan designs, while employees gain access to more specialized and affordable health service coverage choices.
Here is a list of the pros of MEWA plans:
1. Increased Risk of Fraud or Mismanagement of Funds
Since MEWAs are not regulated by federal laws, there is an increased risk that funds could be mismanaged or fraudulently used. It’s important to research the plan and thoroughly investigate its history.
This is in terms of customer service and performance before signing up for a MEWA plan.
2. Access to Fewer Providers
MEWAs typically have access to fewer healthcare providers than traditional group plans, which can limit your coverage options and potentially lead to higher out-of-pocket costs for services received outside the network.
3. Potentially Limited Appeals Process
It is important to understand whether you will have access to an appeals process if your claims are denied or challenged under a MEWA plan – in some cases, you may not.
Knowing that you can take steps to protect yourself in the event of a dispute can be invaluable in helping you make an informed decision about participating in a MEWA plan.
Is MEWA for You?
Understanding multiple employer welfare arrangements (MEWA) can be overwhelming, but there are many resources and guidance available to help you navigate its legal requirements.
Determine the approach that works best for you based on your circumstances, and make sure that your MEWA is safe, secure, and lawful according to applicable legislation.
Visit our blog for more updates and guidelines on MEWA and related topics.