Guest Brenda N. Posted October 23, 2003 Posted October 23, 2003 Are Professional Employer Organizations (PEO) considered MEWAs? Are they considered associations?
Ron Snyder Posted October 23, 2003 Posted October 23, 2003 PEOs are not considered to be MEWAs, but the self-funded health and welfare plans they sponsor are. Take a look at the EBSA website where M-1 filings are available. About half of the M-1s were filed by PEO firms relative to the plans they provide. THE EBSA regulation of MEWAs is limited to compliance with HIPAA, COBRA, and subsequent enactments. The real potential problem for such plans may occur under state law. Only about 17 states have employee leasing laws that exempt PEO firms from registration of their plans as insurance plans that need to be approved and regulated by the state insurance department. A couple of other states treat PEO plans as single employer plans. The balance, about 30 states require such MEWAs to comply with state insurance laws.
GBurns Posted October 24, 2003 Posted October 24, 2003 Do you have any reference cites etc showing what each state has? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Ron Snyder Posted October 30, 2003 Posted October 30, 2003 NAPEO puts out a summary of each state's laws.
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