An Act amending Multiple Employer Welfare Arrangements (“MEWAs”) was recently passed in the State of New Jersey. The Act revises the “Self-Funded Multiple Employer Welfare Arrangement Regulation Act,” originally enacted in 2002. The revised provisions of the law become effective January 1, 2016.
A MEWA is an arrangement that permits unrelated employers to establish a welfare plan that offers benefits to employees of participating employers. These arrangements may be governed by Federal Law, under the Employee Retirement Income Security Act (“ERISA”), but are always governed by State Law.
In the State of New Jersey, a self-funded MEWA is not considered an insurance company or an insurer. However, State provisions related to benefits offered may apply to the participating employer dependent on its status as a small or large employer.
Contact a USI office or your USI representative for further information on the NJ state law.