The Senate Monday passed legislation sponsored by Senator Robert Singer that would strengthen and bring transparency to Multiple Employer Welfare Arrangements in New Jersey in an effort to expand insurance options for small businesses.

MEWAs are an alternative to traditional commercial insurance that permits employers, especially small- and mid-sized businesses, to band together to obtain economies of scale to help them reduce their health insurance costs by self-insuring as a group and provide a greater range of health benefits to their employees. Senator Singer’s legislation, S2220, is intended to promote the availability of health care by strengthening the ability of MEWAs to compete with traditional health insurance carriers and self insured entities to provide those benefits at a reasonable cost.

“Small and medium-sized employers have been hit extremely hard by the escalation in healthcare costs,” said Singer (R-Monmouth, Ocean). “Multiple Employer Welfare Arrangements give these smaller companies a way to join together to purchase a plan at a much lower rate than if they were going it alone.”

Among other things, Senator Singer’s legislation, S-2220, would strengthen requirements for the filing of financial statements by MEWAs and require the filings be made available on a website established and maintained by the MEWA.

“This greater level of transparency will strengthen the financial integrity of MEWAs, providing greater security to those covered by the system,” Singer concluded. “I’ve listened to a wide range of opinions in crafting this legislation and am pleased that we could come together today to pass this bill to increase access to health care for persons of all walks of life.”

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