Department of Labor Targets False Employer Welfare Deals

On Monday, the Department of Labor announced a crackdown on multiple employer welfare arrangements, which have defrauded small businesses and their employees of hundreds of millions of dollars. MEWAs are designed to allow small businesses to provide employees with lower-cost health coverage by combining premium contributions from multiple employers. DOL issued proposed rules -- authorized by the federal health reform law -- that would require MEWAs to register with the department and would give the secretary greater authority over the plans.

• "Labor Department Seeks Tougher Rules on 'Multiple-Employer' Plans" (Japsen, "Prescriptions," New York Times, 12/5).
• "Labor Dept. Targets Fraudulent Insurance Plans" (Baker, "Healthwatch," The Hill, 12/5).