Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage?

Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage?

• A. Multiple Employer Welfare Arrangement (MEWA)
• B. Health Maintenance Organization (HMO)
• C. Preferred Provider Organization (PPO)
• D. Independent Practice Association (IPA)

Answer: (A)

Multiple Employer Welfare Arrangement (MEWA) is indeed the correct choice as it refers to a legal entity established specifically to provide health coverage to a group of employees from different employers. MEWAs are designed to give smaller employers the ability to offer group health insurance, which helps them secure more affordable rates due to the larger risk pool created by combining participants from various employers. The other options, while relevant in the health insurance landscape, serve different functions. Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are types of managed care plans that provide health services to members, but they are not primarily entities created for the purpose of offering coverage across multiple employers. Moreover, Independent Practice Associations (IPAs) are typically networks of independent physicians who contract with HMOs or other managed care organizations, rather than being established solely for group health coverage through a collective of employers. Thus, MEWAs are specifically designed for affordability in group health coverage among different entities.

Multiple Employer Welfare Arrangement (MEWA) is indeed the correct choice as it refers to a legal entity established specifically to provide health coverage to a group of employees from different employers. MEWAs are designed to give smaller employers the ability to offer group health insurance, which helps them secure more affordable rates due to the larger risk pool created by combining participants from various employers.

The other options, while relevant in the health insurance landscape, serve different functions. Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are types of managed care plans that provide health services to members, but they are not primarily entities created for the purpose of offering coverage across multiple employers. Moreover, Independent Practice Associations (IPAs) are typically networks of independent physicians who contract with HMOs or other managed care organizations, rather than being established solely for group health coverage through a collective of employers. Thus, MEWAs are specifically designed for affordability in group health coverage among different entities.