State RegulationsOH specificDifficulty 2/5
Several small employers in Toledo form a trust through which they jointly provide hospital and surgical benefits to their employees. Under Ohio law, this kind of joint employer welfare arrangement is regulated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
When multiple unrelated employers pool resources to provide health or welfare benefits to their employees through a common arrangement, Ohio treats the vehicle as a multiple-employer welfare arrangement regulated under ORC Chapter 1739. Employers and producers cannot avoid state regulation merely because the arrangement is employer-sponsored or self-funded in structure.
Why the other options are wrong
- A) Ohio law does not grant MEWAs a blanket exemption; ORC Chapter 1739 applies to them.
- C) A blanket policy under ORC 3923.13 covers constantly changing groups without individual underwriting, not a joint employer trust of this kind.
- D) A franchise policy is not the recognized classification here, and the arrangement is not free of state oversight.
Memory hook
Employers pooling welfare benefits = MEWA = Chapter 1739, no exemption for self-funded structures.