§1183 Guaranteed renewability in multiemployer plans and multiple employer welfare arrangements

Summary

Multiemployer and multiple employer welfare group health plans must let an employer whose workers are covered keep the same coverage or move to other coverage under the plan, except for six reasons. They can refuse continued access for (1) not paying required contributions, (2) employer fraud or intentional lies about important facts, (3) not following key plan rules, (4) stopping all coverage in a geographic area, (5) when the plan uses a provider network and no covered employee lives, resides, or works in that network’s service area (and the plan applies this rule the same for all employers without using claims history or health status), and (6) failing to meet the terms of a collective bargaining (labor) agreement, failing to renew an agreement that requires or allows contributions, or failing to employ workers covered by such an agreement.