On Nov. 20, NC LEG passed bill on employer welfare arrangements.
NC LEG passed bill SB 382, relating to disaster relief, including revisions to multiple employer welfare arrangements (MEWA) providing employee welfare benefit plans.
Proposed Legislation
Repealed sections relating to group health plans offered by sponsoring associations.
Eliminated defined terms employer member, Path 2 MEWA, sponsoring association.
Modified definition of MEWA, qualifying criteria at least 1 employer in MEWA domiciled or principal headquarters in NC, or MEWA solicits employer in MEWA domiciled in NC.
Enacts new General statutes NC LEG 58-50A-50, setting requirements on enrollment, coverage, and funding for MEWAs initially licensed on or after Jan. 1, 2025.
New NC LEG 58-50A-55 for licensed MEWA, on reporting requirements, form approval.
Amend qualifications for licensure under NC LEG 58-50A-70, including allow for MEWA administered by nonprofit organization as an alternative to the current requirement.
Similarly, allow MEWA administered by trade association or similar as alternative.
Eliminate limit on audits of exams of MEWA when reasonable belief of noncompliance.
Clarify annual reports due within 150 days after end of fiscal year of MEWA operation.
Required analysis of adequacy of reserves and contributions or premiums charged must be based on review of claims and expenses related to operation of the MEWA.
Amendments to NC LEG 58-7-31 to also include licensed MEWAs with the insurers subject to the statute which governs life and health insurance agreements.
Legislative History
On Mar. 28, 2023, bill introduced into Senate; on Apr. 26, 2023, bill passed Senate.
On Apr. 27, 2023, bill introduced into House; on Jun. 14, 2023, bill passed the House.
On Nov. 20, 2024, bill was concurred; on same day, bill sent to governor for action.
Effectiveness
Effective Jan. 1, 2025, applies to licensed issued per NC LEG 58-50A on or after date.
Nov. 26, 2024 NC LEG Governor Veto
On Nov. 26, 2024, NC LEG reported governor vetoed SB 382 relating to disaster relief.
Dec. 2024 NC LEG Veto Overridden
On Dec. 11, 2024, NC LEG reported bill veto overridden, assigned Ch. SL 2024-57.
