Finance News & Insights

New rules aim to shield small biz from healthcare fraud

Small organizations will want to keep a close eye on what happens with this recent proposal by the Department of Labor (DOL).

The agency just put forward two proposed rules under the healthcare reform law that aim to protect employers and employees who are covered through Multiple Employer Welfare Arrangements (MEWAs) — arrangements where a number of small companies pull their contributions together to obtain affordable healthcare coverage for their workers, spouses and dependents.

The DOL rules would require MEWAs to follow stricter reporting requirements, so employers and workers can’t unexpectedly be cut off from healthcare services.

They would also give the DOL more power to shut down MEWAs that are involved in fraud or other activities that “present an immediate danger to the public safety or welfare.”

Due to gaps in the law, MEWAs have been known to skirt a number of state regs, like the requirement that these plans keep enough funding and reserves to pay the healthcare claims of workers and their families.

For more details on the DOL’s proposed rules, click.

 

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