FAQs On The Form M-1

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What is the Form M-1?
The Form M-1 is a reporting form of the Employee Benefits Security Administration (EBSA). It is the annual report for multiple employer welfare arrangements (MEWAs) and for certain collectively bargained arrangements, as described below.

What is a Multiple Employer Welfare Arrangement (MEWA)?
“MEWA” or “multiple employer welfare arrangement” generally means an employee welfare benefit plan, or any other arrangement, which is established or maintained for the purpose of offering or providing a welfare benefit (including benefits for medical care) to the employees of two or more employers, or to their beneficiaries, except that such term does not include any such plan or arrangement which is established or maintained:

• under, or pursuant to, one or more agreements which the Secretary of Labor finds to be collective bargaining agreements;

• by a rural electric cooperative; or

• by a rural telephone cooperative association.

Some MEWAs are “plans” under Title I of ERISA and some MEWAs are not, but generally, all MEWAs are required to file the Form M-1, unless they are able to take advantage of one of the available exceptions.

When is the Form M-1 due?
Generally, the Form M-1 is due each year by March 1. However, filers will generally be granted an automatic 60-day extension until May 1 if they request one. Expedited deadlines may apply following “originations”. See below for more information on originations. Refer to Section 1.3 of the Form M-1 instructions or call the EBSA Form M-1 Help Desk at 202.693.8360 for additional assistance regarding these expedited filing deadlines.

What if I’m having trouble filing a completed Form M-1 by the deadline?
There are two things you can do:

• Request an extension. Extensions of 60 days are granted automatically by checking Box B3 entitled “a request for an extension” on the Form M-1.

• Call the EBSA Form M-1 Help Desk at 202.693.8360. An analyst will help you complete the report.

Certain collectively bargained arrangements are required to file. When do these entities file the Form M-1?
Some employee welfare benefit plans and other arrangements claim they are not MEWAs because they are established or maintained under, or pursuant to, one or more collective bargaining agreements. These entities are referred to as “entities claiming exception” or “ECEs.”
If an entity claims this exception, the entity must file the Form M-1 for a limited time only. Filing is required for only the first 3 years following an “origination.”

What is an “origination”?
An origination generally occurs whenever:

• A MEWA or ECE first begins offering or providing coverage for medical care to the employees of two or more employers;

• A MEWA or ECE begins offering or providing coverage for medical care to the employees of two or more employers after a merger with another MEWA or ECE if any of the entities involved in the merger are less than three years old; or

• A MEWA or ECE grows more than 50 percent in a single year (unless the growth is due to a merger between entities that are at least three years old).

I have a client that is an employee leasing company. This employee leasing company sponsors a group health plan. Should the plan file the Form M-1?
The Department of Labor has issued several advisory opinions under which a group health plan sponsored by a leasing company is found to be a MEWA. (See DOL Advisory Opinion Letters 91-17A, 91-47A, 92-04A, 92-05A, 92-07A, 93-29A, 95-22A, and 95-29A.) You should examine these advisory opinions and then make a determination with respect to your plan.

If a single MEWA offers two types of group health coverage, an indemnity option and an HMO option, should the MEWA file one Form M-1 or two?
The MEWA should file one Form M-1. Nonetheless, the MEWA should still list all administrators and all plan numbers associated with the coverage provided by the MEWA. If you need more space, you may attach additional pages. These pages should be labeled with the Item number (for example, “Item 1d” or “Items 2a through 2c”) in the upper right corner.

Exceptions

The Form M-1 filing requirements contain exceptions for certain types of MEWAs and ECEs, as follows:

Are insurance companies required to file the Form M-1?
An entity is not required to file if it is licensed or authorized to operate as a health insurance issuer in every state in which it offers or provides coverage for medical care to employees. See 29 CFR 2520.101-2(c)(2)(i)(A).

If a MEWA offers only dental coverage that meets the definition of excepted benefits under sections 732(c) and 733(c) of ERISA, and their implementing regulations, is the MEWA required to file the Form M-1?
No. If a MEWA provides coverage that consists solely of excepted benefits which are not subject to Part 7 of ERISA, the MEWA is not required to file the Form M-1. The purpose of the Form M-1 filing requirement is to provide information concerning compliance by MEWAs with the requirements of Part 7 of ERISA (including the provisions of the Health Insurance Portability and Accountability Act, the Mental Health Parity Act, the Newborns’ and Mothers’ Health Protection Act, and the Women’s Health and Cancer Rights Act).

However, if a MEWA provides coverage that consists of both excepted benefits and other benefits for medical care that are not excepted benefits, the MEWA is required to file the Form M-1. See 29 CFR 2520.101-2(c)(2)(i)(B).

If a MEWA is a group health plan but meets the definition of a governmental plan under section 4(b)(1), a church plan under section 4(b)(2), or a plan maintained only to comply with workers’ compensation laws under section 4(b)(3) of ERISA, is it exempt from the Form M-1 filing requirement?
Yes. A MEWA that is a group health plan but that is not subject to Title I of ERISA is not required to file the Form M-1. See 29 CFR 2520.101-2(c)(2)(i)(C).

If a MEWA provides coverage only through group health plans that are not covered by ERISA, such as a governmental plan, a church plan, or a plan maintained only for the purpose of complying with workers’ compensation laws within the meaning of sections 4(b)(1), 4(b)(2), or 4(b)(3) respectively, is it exempt from the Form M-1 filing requirement?
If a MEWA provides coverage only through group health plans that meet one of those definitions under section 4(b) of ERISA which are not subject to Part 7 of ERISA, the MEWA is not required to file the Form M-1. See 29 CFR 2520.101-2(c)(2)(i)(D).

However, if a MEWA provides coverage through both a group health plan that meets one of the definitions under section 4(b) of ERISA and a group health plan that is subject to Part 7 of ERISA, the MEWA is required to file the Form M-1.

If an entity would not constitute a MEWA but for the fact that it provides coverage to employees of two or more trades or businesses that share a common control interest, does it need to file the Form M-1?
Reporting is not required if the entity would not be a MEWA but for the fact that it provides coverage to the employee of two or more trades or businesses that share a common control interest of at least 25 percent at any time during the plan year, applying the principles of section 414(b) or (c) of the Internal Revenue Code. See 29 CFR 2520.101-2(c)(2)(ii)(A).

If, due to a change in control of businesses (such as a merger or acquisition), an entity provides coverage to the employees of two or more employers, must the Form M-1 be filed?
Reporting is not required if the entity would not be a MEWA but for the fact that it provides coverage to the employees of two or more employers due to a change in control of businesses (such as a merger or acquisition) that occurs for a purpose other than avoiding Form M-1 filing and is temporary in nature (that is, does not extend beyond the end of the plan year following the plan year in which the change in control occurs). See 29 CFR 2520.101-2(c)(2)(ii)(B).

If an entity provides coverage to persons (excluding spouses and dependents) who are not employees or former employees of the plan sponsor, such as nonemployee members of the board of directors or independent contractors, must the entity file the Form M-1?
Reporting is not required if the entity would not be a MEWA but for the fact that it provides coverage to persons who are not employees or former employees of the plan sponsor and the number of such persons does not exceed one percent of the total number of employees or former employees covered by the entity, determined as of the last day of the year to be reported (or in the case of a 90-day origination report, determined as of the 60th day following the origination date). See 29 CFR 2520.101-2(c)(2)(ii)(C).

Where can I get more information on MEWAs?
The Department of Labor has published a booklet called MEWAs: Multiple Employer Welfare Arrangements under the Employee Retirement Income Security Act: A Guide to Federal and State Regulation. It is available by calling EBSA toll-free at 1.866.444.EBSA (3272) and on the Internet at www.dol.gov/ebsa.