Which statement accurately describes a Third-Party Administered MEWA?

• A. Benefits are insured and MEWA is administered by a third party.
• B. Benefits are self-funded and MEWA administered by a third party.
• C. Benefits are insured and MEWA administered by an employer.
• D. Benefits are self-funded and MEWA administered by an insurer.

Answer: (B)

A Third-Party Administered MEWA is a multi-employer arrangement where the benefits are funded on a self-funded basis by the participating employers, and a separate third-party administrator handles the plan’s day-to-day administration, claims processing, and eligibility. This setup means the MEWA bears the funding risk (not an insurer) and relies on an outside administrator to run the program rather than the employer or an insurer.

So, the description that matches this is the one where benefits are self-funded and the MEWA is administered by a third party. The other descriptions mix in insured funding, employer administration, or insurer administration, which don't align with the third-party administered, self-funded model.