Understanding Multiple Employer Welfare Arrangements (MEWAs) for Small Businesses

Rachel Prior of Priority Advisors recently presented to the Lake Township Chamber of Commerce, shedding light on the workings and benefits of Multiple Employer Welfare Arrangements (MEWAs). This insurance option presents a unique opportunity for small businesses to leverage the advantages of larger group health plans.

MEWAs enable smaller companies to join forces within a larger group, like the Lake Township Chamber, to access traditional fully-funded health insurance options. Each business participating in a MEWA can individually choose, manage, and finance its health insurance plan, offering flexibility often unavailable to smaller firms.

Advantages of MEWAs for Small Businesses

Rachel Prior highlighted several benefits of MEWAs, noting that they can provide more favorable underwriting by considering the specific demographics, such as age and health, of each company's employees. This often results in more competitive rates. Additionally, MEWAs grant access to extensive provider networks compared to those offered through individual and family plans, with options available for both Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) plans.

These plans renew annually, ensuring stable and predictable premium costs. This feature allows businesses to review and modify their plans as needed, adapting to changes in employee needs or market conditions.

Comparative Insights: MEWAs vs. ACA Plans

During her presentation, Prior also discussed how MEWAs measure up against plans offered under the Affordable Care Act (ACA). MEWAs are medically underwritten, offering broader benefit options and more extensive provider networks. Notably, EMOs and PPO plans are accessible, and rate uniformity is maintained across all employees with the employer contributing to 50% of the premium costs.

"Access to traditional health plans is crucial for job seekers," noted Rachel Prior, emphasizing the value these plans bring to prospective employees.

Simplified Process with Priority Advisors

To streamline the plan selection process, Priority Advisors employs FormFire, a system designed to collect employee data and facilitate underwriting across eligible carriers. This system enables businesses to receive and compare quotes efficiently. Rachel Prior emphasized that Priority Advisors not only guides companies in selecting the most suitable plan but also handles all associated paperwork.

The convenience offered by Priority Advisors extends beyond the initial plan implementation, as businesses can consistently rely on their expertise for new hires or plan modifications. With the capability to initiate plans anytime during the year, businesses have the flexibility to adjust their offerings to retain talent and meet employee needs continuously.

Key Considerations for Choosing MEWAs

• Medical underwriting considers employee demographics, potentially lowering rates.
• Diverse plan structures offer flexibility in benefits provided.
• Wider provider networks available compared to individual plans.
• Opportunity for annual review and modification of the plans.
• Employer contribution set at 50% of employee premiums.