EBSA Posts Comments for Proposed MEWA Rules

The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) posted public comments received regarding the proposed rule for multiple employer welfare arrangements, Form M-1 revisions and ex parte cease and desist and summary seizure orders.
(update 3/27/2012)

The EBSA extended the comment deadline for the multiple employer welfare arrangement (MEWA) proposed rules from March 5 to March 19.

There was an error in the preamble published in the Federal Register (76 FR 76222) that incorrectly listed the EBSA email address. The incorrect email address was activated to accept messages. However, comments sent electronically prior to February 22, 2012, should be resent via the Federal eRulemaking Portal at www.regulations.gov, or by mail, hand or electronic delivery to the agency at E-OHPSCAMEWARegistration.EBSA@dol.gov to ensure they are received and given due consideration. Comments submitted via the Federal eRulemaking Portal, or by mail or hand delivery were not impacted by the error.
(update 3/2/2012)

The EBSA announced two proposed rules under the Affordable Care Act to protect businesses and workers whose health benefits are provided through a multiple employer welfare arrangement (MEWA).

MEWAs frequently have been used by scam artists and criminals to defraud consumers, resulting in an inability to pay medical claims. When such MEWAs become insolvent, they may leave consumers with substantial unpaid medical bills. For employers or employee organizations that have paid premiums or made contributions to a MEWA, and thought they were doing the right thing for their workers and their families, the impact also can be significant.

The proposed rules call for MEWAs to adhere to enhanced reporting requirements so that employers, workers and their families will not unexpectedly be cut off from needed health care services. The rules also will increase the Labor Department's enforcement authority to protect participants in such plans and allow the department to shut down MEWAs engaged in fraud or other activities that present an immediate danger to the public safety or welfare. 

 Comments on proposals listed above are due on or before March 19, 2012.