A group of small Arizona employers joins together to provide health benefits to their employees through a single arrangement. Under Arizona insurance law, what is such an arrangement called?

Why A is correct

Arizona insurance law describes a MEWA as a welfare arrangement established or maintained by multiple employers to provide benefits to their employees. MEWAs sit squarely within the regulatory oversight of the Arizona Department of Insurance and Financial Institutions (DIFI) because arrangements spanning several employers can carry insurer-type obligations without the sponsors always being licensed insurers.

Why the other options are wrong

• B) Medicare supplement arrangements fill gaps in the federal Medicare program for individuals; they have nothing to do with employer groups.
• C) The defining feature here is multiple employers pooling into one arrangement, which is exactly what the MEWA label captures.
• D) Calling the arrangement federally preempted is wrong; MEWAs remain subject to Arizona regulatory oversight under state insurance law.

Memory hook

Many employers, one welfare plan — a MEWA.