North Carolina § 58-50A-1 - Definitions.

§ 58-50A-1. Definitions.

The following definitions apply in this Article: Employer member. - A person or entity acting directly as the employer of at least one employee, or a working owner, either of whom is a participant covered under a Path 2 MEWA. Employee welfare benefit plan. - The term as defined in Section 3 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1), as amended. Multiple employer welfare arrangement or MEWA. - The term as defined in Section 3 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(40(A)), as amended, that meets at least one of the following criteria: Has at least one employer member of the MEWA that is either domiciled in this State or has its principal headquarters or principal administrative office in this State. Solicits an employer that is domiciled in this State or that has its principal headquarters or principal administrative office in this State. Path 2 MEWA. - A MEWA that is established or maintained by an association of employers classified by the United States Department of Labor as a bona fide group or association under the requirements of 29 C.F.R. § 2510.3-5 and is formed by a sponsoring association that meets the following requirements: Has a constitution or bylaws that provides for all of the following: Regular meetings. Collection of dues from members. Operation by a board of trustees that includes an owner, partner, officer, director, or employee of at least one of the employer members of the association. Has at least one substantial business purpose unrelated to the offering and providing of health insurance or other employee benefits to its employer members and their employees. Has a commonality of interest shared among the employers comprising the Path 2 MEWA based on either of the following: Establishment by employers in the same trade, industry, line of business, or profession. Being a statewide organization where each employer that is a member of the organization has a principal place of business that does not exceed the boundaries of the State or a metropolitan area that is at least partially within the State, even if that metropolitan area includes portions of other states. Sponsoring association. - An association of two or more employer members that offers an employee welfare benefit plan as a Path 2 MEWA. For purposes of this Chapter, a sponsoring association that meets the requirements of this Article shall be deemed to be a large employer. History (2019-202, s. 1.) Editor's Note. - Session Laws 2019-202 provides in its preamble: "Whereas, Association Health Plans are subject to comprehensive consumer protections contained in the Employee Retirement Income Security Act (ERISA), the Health Insurance Portability and Accountability Act (HIPAA), the Mental Health Parity and Addiction Equity Act, the Newborns' and Mothers' Health Protection Act, the Women's Health and Cancer Rights Act, and the Genetic Information Nondiscrimination Act; and "Whereas, Association Health Plans are subject to the Affordable Care Act's "group health plan" requirements, which means Association Health Plans cannot deny individuals coverage if they have preexisting conditions, cannot impose annual and lifetime limits on certain benefits, and must provide free access to certain preventative services; and "Whereas, under ERISA, the State has been regulating self-insured Association Health Plans in a manner that, in addition to the federal consumer protections that apply to fully insured Association Health Plans, fully protects the citizens of this State; and "Whereas, new federal Department of Labor regulations regarding Association Health Plans allow for states to provide greater opportunities for small businesses and self-employed individuals with no employees to access health benefit plans while still providing health insurance consumers with the coverage protections established by the foregoing legislation and other provisions of federal law; Now, therefore," Session Laws 2019-202, s. 6, provides: "The Department of Insurance shall have the power to adopt temporary rules necessary to implement the provisions of this act." Session Laws 2019-202, s. 7(a), (b), provides: "(a) The Department of Insurance shall conduct a study on the feasibility of submitting a 1332 waiver request to the federal Department of Health and Human Services with the goal of allowing (i) working owners and (ii) employers who have a principal place of business that does not exceed the boundaries of the State or a metropolitan area that is at least partially within the State (even if the metropolitan area includes portions of other states) to participate in a group health plan that is subject to large group market insurance requirements. The Department shall report on its findings, including any recommended legislation, to the Joint Legislative Oversight Committee on Health and Human Services no later than 90 days from the effective date of this section. "(b) This section becomes effective only when a final judicial order is issued striking down the United States Department of Labor rules at issue in State of New York, et al., v. U.S. Department of Labor, et al., 19-5152, which is being heard by the United States Court of Appeals for the District of Columbia Circuit." Session Laws 2019-202, s. 9, is a severability clause. Session Laws 2019-202, s. 10 made this section as enacted by Session Laws 2019-202, s. 1, effective October 1, 2019, and applicable to contracts entered into, amended, or renewed on or after January 1, 2020.