MEWAs (Multiple Employer Welfare Arrangements) are group health plans that provide benefits to the employees of two or more employers. These plans are typically formed by small businesses or associations to offer health benefits to their members. Since MEWAs are often self-funded, they are subject to certain regulations and reporting requirements under federal law. One of the key requirements for MEWAs is the filing of Form M-1 with the Department of Labor (DOL).
What is Form M-1?
Form M-1 is used to report information about the operation of a MEWA to the DOL including financial details, the number of participants, and the benefits offered. It is primarily used to ensure that MEWAs comply with the provisions of the Employee Retirement Income Security Act (ERISA), HIPAA, and other applicable laws.
The following entities must file Form M-1 with the DOL:
- MEWAs providing health benefits to two or more employers
- Self-insured MEWAs offering health benefits to employees of multiple employers
- Multiple employer arrangements that provide group health plans to small businesses or associations, including certain trade groups
However, not all group health plans are considered MEWAs. Plans that are fully insured or that fall under certain exceptions (like union plans or governmental plans) are not required to file Form M-1.
Key Filing Requirements and Deadlines
- Initial Filing: Form M-1 must be filed by the end of the first month after the first day of the plan year in which the MEWA begins offering health benefits.
- Annual Filing: After the initial filing, Form M-1 must be filed annually within 90 days after the end of each plan year.
- Late Filings: If the filing deadline is missed, MEWAs may be subject to penalties for late or non-filing.
How to File
Form M-1 is filed electronically through the Employee Benefits Security Administration’s M-1 online filing system.
Failure to file Form M-1 or filing it inaccurately can result in penalties of up to $1,100 per day for each day the filing is late. The DOL strictly enforces these penalties to ensure that MEWAs comply with reporting requirements.
Information Required on Form M-1:
- Basic Plan Information: The MEWA’s name, address, and identification number.
- Employer Information: Details about the participating employers and their eligibility to be part of the MEWA.
- Plan Operations: Information about the MEWA’s operations, such as whether it is self-insured, the types of benefits offered (e.g., medical, dental, vision), and the funding arrangements.
- Financial Information: Financial reports detailing the funding of the MEWA, including whether it is fully insured or self-insured.
- Covered Employees: The number of individuals covered under the MEWA and other data on plan participants.
Employer Considerations
Some MEWAs may be exempt from filing Form M-1, such as those that are fully insured or those that provide benefits only to specific groups (government entities, for example). Confirm whether the arrangement qualifies as a MEWA under ERISA and other relevant laws before determining filing requirements.
MEWAs that fail to comply with the filing requirements may face significant penalties, so plan sponsors should be sure to meet the deadlines and requirements for filing Form M-1.