Which statement describes a Self-funded MEWA's administration?

Which statement describes a Self-funded MEWA's administration?

• A. Self-funded MEWA is administered by a Third-Party Administrator
• B. Self-funded MEWA is administered by an insurer
• C. Self-funded MEWA is administered by the employer
• D. Self-funded MEWA does not provide benefits

Answer: (A)

In a self-funded MEWA, administration is handled by a Third-Party Administrator who takes care of enrollment, claims processing, eligibility, and coordination with providers, while the MEWA uses its own funds to pay the claims (often with stop-loss protection). The administrator isn’t the insurer, and the employer isn’t typically running the day-to-day administration across multiple employers. The plan still provides benefits to employees; the administrator’s role is to manage the benefits program, not to fund or deny coverage themselves. So the best description is that a self-funded MEWA is administered by a Third-Party Administrator.

In a self-funded MEWA, administration is handled by a Third-Party Administrator who takes care of enrollment, claims processing, eligibility, and coordination with providers, while the MEWA uses its own funds to pay the claims (often with stop-loss protection). The administrator isn’t the insurer, and the employer isn’t typically running the day-to-day administration across multiple employers. The plan still provides benefits to employees; the administrator’s role is to manage the benefits program, not to fund or deny coverage themselves. So the best description is that a self-funded MEWA is administered by a Third-Party Administrator.