Final answer:
A Multiple Employer Welfare Arrangement (MEWA) consists of two or more employers or labor unions joining together to seek group health insurance coverage, often providing better rates and benefits for small businesses.
Step-by-step explanation:
When two or more employers or labor unions seek group health insurance coverage by joining together to form a larger group, this arrangement is best described as a Multiple Employer Welfare Arrangement (MEWA). A MEWA facilitates the provision of health care benefits to employees of the member employers, typically offering better rates than individual employers could achieve. This type of arrangement is especially beneficial for small businesses, which might otherwise struggle to offer competitive health benefits due to higher risks and costs of providing insurance independently.