Self-Funded MEWA Rules

Effective in December 2019, Insurance Commissioner Kerr issued Rule 119 (the “Rule”) regulating multiple employer trusts and MEWAs that are not fully insured. Amongst other items, the Rule provides licensing standards and financial solvency requirements for self-insured MEWAs.

As background, Arkansas Insurance Code 23-92-101(c)(3), which pertains to self-funded MEWAs, has long permitted the Insurance Commissioner to issue a rule to establish requirements for self-funded MEWAs. Under this authority, the Rule provides clear instructions to interested employers and brokers and to protect the public and medical providers.

The Rule’s requirements are similar to those of neighboring states, specifically Texas and Oklahoma. Covered topics include the benefits offered, financial requirements, fees, insolvency procedures, examinations, filing of forms and rates, written disclosures and other consumer protections, reporting requirements, and excess or stop loss insurance. The Rule also provides the criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas.

Accordingly, interested employers and brokers should be aware of these standards established for the licensing, formation, and regulation of MEWAs that are not fully insured. Employers seeking to band together to create health benefit plans for their members may benefit from the new guidelines. Further information is available through the Arkansas Insurance Department.

Rule 119 »