Short answer: A MEWA lets unrelated employers band together to offer health benefits as a group, aiming for economies of scale. Because self-funded MEWAs have a history of insolvency and fraud, they are heavily regulated under both ERISA and state law.
A Multiple Employer Welfare Arrangement (MEWA) provides health or welfare benefits to the employees of two or more unrelated employers. The appeal is pooling: spreading risk and administrative cost across a larger group. Association Health Plans (AHPs) are one well-known type of MEWA.
The catch is regulation. Self-funded MEWAs are subject to both ERISA and state insurance law (states may apply their solvency and reserve rules), because a number of MEWAs have failed or been used fraudulently, leaving unpaid claims. Employers considering a MEWA should diligence its funding, reserves, and regulatory standing carefully.
Sources
- ERISA §3(40) (MEWA definition); U.S. Department of Labor MEWA guidance. Verify specifics before CE use.
Content history
Originally published: June 16, 2026
Last reviewed: June 16, 2026