DEFINITION of 'Multiple Employer Welfare Arrangement - MEWA'

An arrangement where a group of employers pool their contributions in a self-contributing benefits plan for their employees. The employers make contributions into the plan based on the number of employees they have and the estimated costs associated with each employee.

BREAKING DOWN 'Multiple Employer Welfare Arrangement - MEWA'

A multiple employer welfare arrangement is a good way for smaller employers to get group health and other insurance benefits for their employers. By pooling their contributions together, these smaller employers are better positioned to offer the best benefit packages from insurance companies due to economies of scale.

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