Many small businesses and self-employed individuals are unable to access affordable coverage by forming a multiple employer welfare arrangement.

Key points

  • Multiple employer welfare arrangements (MEWAs) enable small businesses to pool their risk to purchase more affordable health coverage.
  • The Trump administration’s Department of Labor (DOL) adopted a rule expanding opportunities for small businesses and self-employed individuals to join MEWAs.
  • Due to a federal court ruling, the Texas MEWAs that operated according to the DOL’s rule had to shut down.
  • Texas can enact legislation similar to the DOL’s rule, giving Texas small businesses and self-employed individuals the opportunity to purchase more affordable health coverage through a MEWA.