Form M-1 is a report filed with the Department of Labor (DOL) to help them monitor Multiple Employer Welfare Arrangements (MEWAs) and ensure they comply with federal health coverage laws. The purpose is to protect employees and their families by providing transparency and combating fraud in MEWA operations.
A MEWA is essentially any arrangement that provides health or other welfare benefits to employees of two or more unrelated employers. This includes most Association Health Plans (AHPs). An important distinction is that MEWAs are not the same as a single-employer plan or a multiemployer plan (like those in a collective bargaining agreement). They typically exist to help smaller, unrelated employers pool resources to get more affordable benefits.
Who Must File?
The administrator of a MEWA that offers or provides medical benefits to employees of two or more employers must file Form M-1. This is true even if the MEWA is not considered an ERISA plan.
You must file Form M-1 if your arrangement:
Provides medical benefits, and
Is a MEWA, meaning it covers employees of two or more employers that are not part of the same controlled group.
Important exceptions:
Non-medical benefits: If your arrangement only provides excepted benefits (like standalone dental or vision that are not an integral part of a larger medical plan), you do not need to file.
Controlled group: If all the employers in your arrangement are part of the same controlled group (e.g., a parent company and its subsidiaries), you are considered a single employer and are not a MEWA.*
25% or more common control: A plan that covers two or more trades or businesses that have a common control interest of at least 25% are not required to file.*
Collectively bargained plans: Plans established through a bona fide collective bargaining agreement are generally exempt from the MEWA rules and do not need to file Form M-1.
*Determining controlled group/MEWA status is complicated. If you aren’t sure of your status, we recommend seeking legal counsel on the matter. ERISAfire's partner LeFevre Law can help you make that determination; email sales@erisafire.com for a quote.
When to File
There are two types of M-1 filings:
Annual Filing: The annual Form M-1 must be filed no later than March 1 following any calendar year for which a filing is required.
Extension: You can request an automatic 60-day extension, which pushes the deadline to May 1. To get the extension, you must file a separate electronic request by the March 1 deadline.
Registration Filings: A MEWA must file a registration Form M-1 for specific events. These are often called "triggering events" and require a filing outside of the annual schedule. This is a critical point that many administrators miss. These filings are due:
30 days before the MEWA begins operating in any state.
Within 30 days of a merger with another MEWA.
Within 30 days of a "material change" to the MEWA, as defined in the form's instructions.
Within 30 days of the amount of employees covered under the MEWA increases by at least 50% from the last day of the previous calendar year.
What to Do
As a Plan Administrator or Broker:
Your first task is to determine if the arrangement you are dealing with is a MEWA and if it offers medical benefits.
Determine MEWA Status. Review the employers involved. Are they unrelated? Are they outside of a controlled group? If the answer is yes, you are likely dealing with a MEWA.
Identify Filing Obligation. Check if the MEWA provides medical care benefits. If so, a filing is required.
File On Time. The M-1 must be filed electronically with the DOL's Employee Benefits Security Administration (EBSA). There is a specific online filing system for this purpose. You cannot file a paper copy.
Tips for a Successful Filing:
Gather Information: You will need detailed information about the MEWA, including its sponsors, service providers, and a list of all states where it operates.
Delegate with Caution: While a TPA or service provider can prepare and file the form, the legal responsibility for a timely and accurate filing ultimately rests with the plan administrator. Ensure you have a clear, written agreement detailing this delegation and keep a record of the filing confirmation.
Stay Vigilant: Be aware of the registration triggering events. A MEWA can be required to file more than one Form M-1 in a single calendar year.
Penalties for Non-Compliance
The DOL is serious about MEWA oversight. Failure to file, or late and incomplete filings, can result in significant civil penalties. As of the most recent penalty updates, the fine for non-compliance can be up to $1,992 per day for each violation.