Which statement best describes a Self-funded MEWA?

• A. Benefits are insured and MEWA administered by a third party.
• B. Benefits are self-funded and is administered by a Third-Party Administrator.
• C. Benefits are self-funded and not administered.
• D. Benefits are insured and administered by the employer.

Answer: (B)

A MEWA is a single health plan that covers employees from multiple employers. When it’s self-funded, the plan pays for medical claims from its own funds rather than purchasing a traditional insurance policy. Administration by a Third-Party Administrator means another organization handles tasks like enrollment, eligibility, claims processing, and network management. So the best description is that benefits are self-funded and administered by a Third-Party Administrator. If a MEWA were insured or if the employer themselves handled administration, those would not describe a self-funded, third‑party–administered arrangement.