What is a Multiple-Employer Trust (MET) designed for?

A Multiple-Employer Trust (MET) is specifically designed to allow various employers, particularly those that may not meet the requirements to secure group insurance on their own, to band together and pool their resources. This collaborative approach enables these employers to access group insurance benefits, which can lead to more favorable rates and terms than they could achieve individually.

By forming a MET, smaller or unrelated businesses can leverage the collective size and bargaining power of the group to secure insurance coverage that otherwise might be unattainable due to lack of employee numbers, financial stability, or other qualifying criteria. This mechanism helps improve accessibility to health insurance for employees of companies that may otherwise struggle to provide such benefits independently.

The other options do not accurately describe the purpose of a MET. While combining resources of unrelated businesses does occur, the primary focus is on enabling those businesses to obtain group insurance. Selling insurance directly to employees or creating a single policy for individuals does not align with the MET’s collective approach to access coverage through pooling.