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Summary of differences between federal and state regulations
Among the various employee benefit programs established and governed by ERISA are multiple employer welfare arrangements (MEWAs), which are subject as well to state regulatory and fiscal standards consistent with ERISA. Federal ERISA covers MEWAs. Montana has laws governing self-funded MEWAs.
Montana laws include the following provisions:
- A person may not establish or maintain a self-funded multiple employer welfare arrangement in Montana unless the arrangement first obtains a certificate of authority from the commissioner. §33-35-201
- Employers participating in the self-funded multiple employer welfare arrangement must be either engaged in the same trade, profession, or industry or the employers participating in the arrangement are members of a bona fide association. §33-35-202
- The employers participating in the arrangement exercise control over the arrangement. §33-35-202
- The arrangement must provide only allowable benefits. §33-35-202
- The arrangement must provide allowable benefits to at least two employers and not less than 75 employees. §33-35-202
- The arrangement may not solicit participation in the arrangement from the general public. §33-35-202
- Arrangements must maintain a calendar year for operations and reporting purposes unless the commissioner consents to a fiscal year. §33-35-203
- Arrangements must establish and maintain contribution rates for participation under the arrangement. §33-35-210
- Arrangements must, within three months following the close of the arrangement's year of operations, file with the commissioner a statement of financial condition, a statement of change in financial conditions, a statement of its contribution rates for the ensuing year, a statement of operations for the previous year, if the total payments to the arrangement for participation during the prior year of operations exceeded the sum of $2 million, an audit satisfying the requirements of the commissioner's rules governing annual audited reports, and additional information as the commissioner reasonably determines to be necessary to determine the financial integrity of the management. http://leg.mt.gov/bills/mca/33/35/33-35-301.htm
- Arrangements must also file with the commissioner a copy of the arrangement's form 5500, and all attachments. §33-35-301
- Arrangements are also subject to other insurance code requirements. §33-35-306
- Policies issued by a self-funded multiple employer welfare arrangement must contain a disclosure notice. §33-35-307
- Plans limited to employees of professional employer organizations or groups are not multiple employer welfare arrangements. §39-8-207
State
Contact
State Auditor’s Office, Insurance Division
Regulations
Montana Code Annotated
Title 33 Insurance and Insurance Companies, Chapter 35 Multiple Employer Welfare Arrangements
http://leg.mt.gov/bills/mca_toc/33_35.htm
§33-35-201: http://leg.mt.gov/bills/mca/33/35/33-35-201.htm
§33-35-202: http://leg.mt.gov/bills/mca/33/35/33-35-202.htm
§33-35-203: http://leg.mt.gov/bills/mca/33/35/33-35-203.htm
§33-35-210: http://leg.mt.gov/bills/mca/33/35/33-35-210.htm
§33-35-301: http://leg.mt.gov/bills/mca/33/35/33-35-301.htm
§33-35-306: http://leg.mt.gov/bills/mca/33/35/33-35-306.htm
§33-35-307: http://leg.mt.gov/bills/mca/33/35/33-35-307.htm
Title 39 – Labor, Chapter 8 – Professional Employer Organizations and Groups Licensing, Part 2 - Licensing
§39-8-207: http://leg.mt.gov/bills/mca/39/8/39-8-207.htm
In addition to Chapter 35, self-funded MEWAs are subject to the following provisions (from §33-35-306):
- Title 33, Chapter 1, part 4, (http://leg.mt.gov/bills/mca_toc/33_1_4.htm) but the examination of a self-funded multiple employer welfare arrangement is limited to those matters to which the arrangement is subject to regulation under Chapter 35.
- Title 33, Chapter 1, part 7 on hearings and appeals
http://leg.mt.gov/bills/mca_toc/33_1_7.htm - Title 33, Chapter 18 Unfair Trade Practices
http://leg.mt.gov/bills/mca_toc/33_18.htm (except 33-18-242) - Title 33, Chapter 19
http://leg.mt.gov/bills/mca_toc/33_19.htm - Title 33, Chapter 22
§33-22-107 http://leg.mt.gov/bills/mca/33/22/33-22-107.htm,
§33-22-131 http://leg.mt.gov/bills/mca/33/22/33-22-131.htm,
§33-22-134 http://leg.mt.gov/bills/mca/33/22/33-22-134.htm,
§33-22-135 http://leg.mt.gov/bills/mca/33/22/33-22-135.htm,
§33-22-525 http://leg.mt.gov/bills/mca/33/22/33-22-525.htm, and
§33-22-526 http://leg.mt.gov/bills/mca/33/22/33-22-526.htm.