Additional Program Integrity Provisions

• Prohibition on False Statements. Making certain false statements in the marketing of multiple employer welfare arrangements (MEWA) regarding financial conditions or solvency, benefits or state or federal regulatory status is a crime punishable by fines and up to 10 years in prison. Effective upon enactment. (PPACA § 6601)
• Applicability of State Law. DOL may adopt regulations to set standards, or issue an order, to establish that state fraud and abuse laws will apply to persons providing insurance through a MEWA. Effective upon enactment. (PPACA § 6604)
• Cease and Desist Orders. DOL may issue administrative cease and desist and seizure orders for MEWA plans that are fraudulent or in hazardous financial condition. Provides for an administrative appeals hearing. Effective upon enactment. (PPACA § 6605)
• MEWA Registration. Requires MEWAs to register with DOL prior to operating in a state. Effective upon enactment. (PPACA § 6606)