Multiple Employer Welfare Arrangement

What Does Multiple Employer Welfare Arrangement Mean?

A Multiple Employer Welfare Arrangement (MEWA) is a formal arrangement where a group of employers pool their contributions into a single plan that provides benefits to their employees. Each employer contributes to the plan based on the number of employees they have and the associated costs for each employee.

Insuranceopedia Explains Multiple Employer Welfare Arrangement

A Multiple Employer Welfare Arrangement (MEWA) is a cost-effective way for employers to provide group insurance benefits to their employees. By pooling their resources, employers can leverage economies of scale and secure competitive benefit packages from insurance companies.

The group forming an MEWA can consist of an association of employers, a trust formed by employers, or a trust established by a labor union.