A cautionary note about health insurance trusts for ministries.
The Department of Labor is warning churches about ‘Health Insurance Trusts’. These trusts (MEWAs) are created when a health insurance agent joins two unrelated ministries under one health insurance policy. While they can be legitimate, the U.S. Department of Labor has stated that these trusts are sometimes marketed using attractive premiums that “… generate large administrative fees for the promoters,” and “…are nothing more than shams designed to avoid state insurance regulation.”* The Department of Labor “has devoted significant resources to investigating and litigating issues connected with abusive MEWAs created by unscrupulous promoters who sell the promise of inexpensive health benefit insurance, but default on their obligations.”*
If you are solicited by someone that claims to have a special program and a way to outsmart the system, be sure to review the US Department of Labor’s Fact Sheet on this topic here: http://www.dol.gov/ebsa/Newsroom/fsMEWA0902.html
Resources: The Impact of Healthcare Reform for Churches: http://896.a9e.myftpupload.com/health_insurance/
More information on how our Health Benefits Department can assist can be found on our newly redesigned website by clicking here.