Can retiree participate in MEWA after his employer goes away?

[Guest CMC]

Can a retired doctor whose practice participated in a MEWA close the doors to that practice and still participate in the MEWA? I'm thinking not, since his particular participating employer has gone away. Any thoughts?

[Guest Greaven]

We are the administrator of a MEWA in Texas. It is filed as a Trust. Last year, an employee who was covered under the MEWA while employed, elected COBRA after had been terminated by his employer. Howver, even though the company has since dropped out of the MEWA this person is still on COBRA through the Trust/MEWA.

Hope this helps.

[Larry M]

I thought Federal COBRA requirement ended when sponsoring employer's plan terminated.

Of course, there can be a conversion and there could also be a more lenient structure to a MEWA.

[mroberts]

It's going to come down to how the MEWA plan was drafted and what the underlying contract says can be done. Looking at an employer/employee relationship, yes a COBRA participant would be SOL in the case of his or her company no longer offering medical benefits or going out of business. Since a MEWA is an association plan, the guidelines of that plan may permit a COBRA electee to remain on the plan for the full 18, 29 or 36 months. I would carefully review the plan document and see what the case is.