If you are like most businesses your broker is reaching out to you to talk about your health insurance renewal. In the past you may have been reluctant to look at different alternatives to your current plan due to cost; however, changes in the small group benefit market should give you cause to investigate new options.
Multiple Employer Welfare Arrangements (MEWAs) enable a group of small businesses to come together and create a large self-funded plan. MEWAs are governed by ERISA which enables them to avoid the costly rating structure of the ACA. In a MEWA, some groups can realize a cost savings of over 30%.
Many health insurance brokers are still working to understand MEWAs. In addition, some MEWAs require special designations or agreements with carriers or plan sponsors to be able to market. Your broker may not be aware of these products or have access to them.
AUI provides access to the following MEWAs:
- COSE Health & Welfare Trust (MMO)
- SOCA MEWA (Anthem)
- Ohio State Medical Association (OSMA) Health Benefits Plan
- Ohio Farm Bureau Health Benefits Plan
So how do you know if a MEWA is right for you? An AUI broker can take you through the vetting process. This includes every employee filling out an electronic health record to determine your rates. Every MEWA group must be medically underwritten which means that each company is rated based on the health conditions in the group. This allows the group to avoid community rating found in ACA that only allows for general demographics to dictate universal cost. In other words – it pays to be healthy!
While some MEWAs are new to the insurance market the concept has been around since 1974. If you would like more information or see how an AUI broker can help you save on your group health insurance premiums by exploring this alternative benefit contact us today!
