According to the Ohio Small Business Profile, small businesses make up 98% Ohio’s businesses. They employ over 2 million workers which accounts for 46% of Ohio’s workforce. For many small businesses, the current health insurance landscape provides limited choice and flexibility when it comes to offering employees healthcare coverage.
Multiple Employer Welfare Arrangements (MEWAs) were created on the belief that being a small business means you can also provide the benefits of a larger company. This includes competitive rates and a broad variety of plan options. A MEWA allows a group of small businesses to come together and create a large self-insured plan. MEWAs avoid the structure of ACA because they are governed by ERISA which was established in 1974 long before the word Obamacare was a household name.
AUI specializes in MEWAs for small groups. The plans we offer include:
- COSE Health and Welfare Trust (Medical Mutual)
- SOCA Benefits Plan (Anthem)
- Ohio State Medical Association Health Benefits Plan
- Ohio Farm Bureau Health Benefits Plan
MEWAs are medically underwritten which means that each of the member companies must go go through an individual underwriting process where rates are based on health conditions within the group. The allows groups to avoid the community rating structure of ACA and as a result some organizations have seen a decrease in their premiums of over 30%.
In order to receive rates, each employee must complete a medical questionnaire through an online application process called Formfire. AUI can take a group through the discovery phase of determining if a MEWA is the right fit for your organization and with access to more than one MEWA option AUI can help you determine the right plan design and network option.
To learn more about how MEWAs are a solution to your small business benefit headaches contact us!