Employers would be best served to look for ways to give their employees health and welfare benefits. Have that option available could entice top candidates to join your organization. This is where the multiple employer welfare arrangement, MEWA for short, comes into play. Let’s discuss what it is and how it can be beneficial.
This insurance is for employers who wish to give their workers or their beneficiaries health coverage.
For the multiple employer welfare arrangement to work, employers must put money into the plan. The amount of money is determined by the number of employees on staff and the estimated cost of each worker.
There are a variety of different plans under the multiple employer welfare arrangement. Some cater to customers looking for in-network coverage, while other plans will work with you for out-of-network coverage. The plans can be quite flexible as they are largely consumer-driven. As a business, it may be best to consult with an agent to see which plan works best for your needs.
Employers benefit greatly from this type of insurance as they pool with small businesses for lower premiums. Another benefit for small businesses is that the insurance can provide coverage for as little as two employers or a large group. Economies of scale can be easily accessed through this coverage, something that smaller employers wouldn’t have been able to have prior.
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