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Release Date: 02/11/2000 Release Number:
00-11 Contact Name: Gloria Della Phone Number:202.219.8921 |
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The U. S. Department of Labors Pension and
Welfare Benefits Administration published today a new Form M-1 annual report
for multiple employer welfare arrangements (MEWAs). |
Secretary of Labor Alexis M. Herman said,
Unfortunately some unscrupulous operators can take advantage of small
employers by taking money designed to provide health benefits to their
employees and escape detection. This new tool will help us to better identify
those arrangements that need scrutiny and to coordinate more effectively with
the states to protect small employers and their employees who are hurt by this
abuse. |
Generally MEWAs are arrangements which offer
medical benefits to the employees of two or more employers, or to their
beneficiaries. These arrangements may not include plans which are established
or maintained under collective bargaining agreements, by a rural electric
cooperative or by a rural telephone cooperative association. |
In 1992, in a report entitled States Need
Labors Help Regulating Multiple Employer Welfare Arrangements, the
General Accounting Office recommended a MEWA reporting requirement. However, at
the time, the department did not have legislative authority to implement such a
requirement. Then, in 1996, the Health Insurance Portability and Accountability
Act gave the department this authority. |
Under the new reporting requirement, the one-page
Form M-1 is generally required to be filed once a year. The first year, the
form is generally due May 1, 2000, but administrators can request an automatic,
60-day extension to July 1, 2000. The next filing would then not be due until
March 1, 2001, and on every March 1 thereafter. |
PWBA is committed to working together with
administrators to help them comply with this filing requirement. In this
regard, PWBA has created a good faith safe harbor with respect to filings due
in the year 2000. Under the safe harbor PWBA will not assess penalties in cases
where there has been a good faith effort to comply with the filing
requirement. |
To help filers, PWBA is publishing a guide for
completing the Form M-1, which is available by calling the PWBA toll-free
publication hotline at 1-800-998-7542 and on the Internet at
www.dol.gov/dol/pwba. Plan administrators may also contact us with any
questions or for assistance in completing this report by calling (202)
219-8818. |
Written comments on the Form M-1 are invited and
should be submitted, on or before April 11, 2000 to the Pension and Welfare
Benefits Administration, Room C-5331, U.S. Department of Labor, 200
Constitution Avenue, NW., Washington, DC 20210. Attention: MEWA reporting.
Written comments also may be sent by Internet to the following address:
MEWArpt@pwba.dol.gov. All public comments will be available for public
inspection in the PWBA Public Disclosure Facility in Room N5638 at the same
street address. |
U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
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Archived News Release Caution: Information may be out of date.
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