Federal & State Regulations | MEWAs - South Carolina | J. J. Keller® Compliance Network

State Info

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. South Carolina has laws governing multiple employer self-insured health plans. The laws include the following provisions:

Licenses, issued by the director or his designee, are required. (§38-41-20)
The commissioner must be notified, in writing that the plan is transacting or proposing to transact business. (§38-41-25)
No multiple employer self-insured health plan may be licensed unless it has and maintains a minimum of 250 covered employees. (§38-41-30)
At the time application for a license is made, the multiple employer self-insured health plan must file with the department a copy of the plan's bylaws, all schedules of benefits, and all management, administration, and trust agreements which the plan has made or proposes to make for the conduct of its business and affairs. (§38-41-40)
A multiple employer self-insured health plan must include aggregate excess stop-loss coverage and individual excess stop-loss coverage provided by an insurer licensed by the state. (§38-41-50)
Funds collected from the participating employers under multiple employer self-insured health plans must be held in trust. (§38-41-60)
Every multiple employer self-insured health plan must make and keep a full and correct record of its business and affairs and the director or his representative shall inspect these records at least every three years. (§38-41-80)