Multiple-employer health plans will be subject to quick enforcement procedures

Dec 7 2011

Under a proposed rule stemming from the health law, the secretary of labor will have enforcement tools designed to protect employers, providers and workers from mismanaged or fraudulent multiple-employer welfare arrangements.

CQ HealthBeat: Fraudulent MEWAs Subject To Quicker Enforcement Procedures Under Proposed Rules
The Secretary of Labor would be authorized to issue cease-and-desist orders to multiple employer health plans suspected of committing fraud and to seize assets of those appearing to be financially unstable, under proposed rules published Monday. The rules would also strengthen federal registration requirements (Bristol, 12/5).

The Hill: Labor Dept. Targets Fraudulent Insurance Plans
The Labor Department announced new steps Monday to crack down on fraud in certain employer-based health care plans. The new rules, which implement part of the health care reform law, target multiple employer welfare arrangements (MEWAs). The Labor Department said MEWAs, through which multiple employers join together to offer health coverage, are a magnet for fraud (Baker, 12/5).

Modern Healthcare: Rules Would Boost Labor's Antifraud Powers
Two new proposed rules aim to cut off revenue for small employer self-funded insurance pools that are suspected of illegal activity. The proposed rules would give regulators new tools to move more aggressively to shut down the insurance pools, known as multiple employer welfare arrangements, which frequently become insolvent -; either through mismanagement or by design -; according to federal officials. Such arrangements are attractive to some small employers because they offer lower-cost health insurance coverage and other benefits to workers (Daly, 12/5).