MEWA Act

S 3167, the MEWA Act, clarifies how groups of small businesses or self-employed individuals can form multi-employer health plans under federal law. It defines specific requirements for these groups (e.g., at least 51 aggregated employees, 2+ years of operation, no health-based discrimination in membership) and allows them to operate as single entities for coverage purposes. The bill permits these plans to set premiums using actuarial methods that consider overall group claims but adjust individual employer contributions based on their specific risk, while prohibiting discrimination based on health status or pre-existing conditions. It directly affects small business associations and self-employed individuals who organize to provide group health coverage, ensuring their plans comply with ERISA and anti-discrimination rules. The law does not create new insurance but provides a clear framework for existing multi-employer health arrangements.