Centers for Medicare and Medicaid Services (CMS) are considering how self-insured employers are going to be required to report liability, no-fault or workers compensation cases for employers participating in Captives and other Multi-Employer Welfare Arrangements (MEWAs)..

In written guidance, CMS has designated the Responsible Reporting Entity for Group Health Plan coverage as the self-insured (captive) plan's administrator or fiduciary.  CMS in writing designates the RRE for liability in the same fashion, although they have made comments in teleconferences that seem to indicate they may hold the individual employer responsible instead.  CMS clearly states that the RRE for workers' compensation is the the employer.

During a recent CMS Town Hall meeting, a participant asked if each employer of a captive was required to report and CMS responded in the affimative, but agreed to take the matter under consideration.

Resolution

In response to our article and contact with CMS, CMS has clarified which entity is the RRE given in summary below.

The fiduciary of Single Employer Welfare Arrangements and  Multi-Employer Welfare Arrangments (e.g., captives) are responsible for reporting.  For example, a Captive Insurer may report for all of their participating employers and may use an TPA or Agent as their vehicle for reporting.