Final Regulations on MEWA Cease and Desist Summary Orders

The DOL releases final regulations on ex parte cease and desist and summary seizure orders regarding multiple employer welfare arrangements.

Document Excerpt

This document contains two final rules under the Employee Retirement Income Security Act of 1974 (ERISA) to facilitate implementation of new enforcement authority provided to the Secretary of Labor by the Patient Protection and Affordable Care Act (Affordable Care Act). The Affordable Care Act authorizes the Secretary to issue a cease and desist order, ex parte (i.e. without prior notice or hearing), when it appears that the alleged conduct of a multiple employer welfare arrangement (MEWA) is fraudulent, creates an immediate danger to the public safety or welfare, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury. The Secretary may also issue a summary seizure order when it appears that a MEWA is in a financially hazardous condition.

 

Link https://www.federalregister.gov/articles/2013/03/01/2013-04862/ex-parte-cease-and-desist-and-summary-seizure-orders—multiple-employer-welfare-arrangements

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