Exempt from Licensure
Unlicensed entities offering health insurance has become increasingly common nationwide. These entities, which are often referred to as Multiple Employer Welfare Arrangements (MEWAs), claim to be exempt due to a federal law Employee Retirement Income Security Act (ERISA), but are not exempt. Most of these self-insured unlicensed entities offering health insurance are doing so illegally.
Furthermore, many MEWAs have folded, leaving victims with millions of dollars in unpaid claims. It is always best to do business with a licensed insurance company. MEWAs should not be confused with self-funded plans that an employer may offer on its own to its employees. These single employer self-funded plans are legal.