The U.S. Department of Labor recently issued a final regulation green-lighting the expanded adoption of “association health plans” (or “AHPs”) by self-employed individuals and small businesses. This new rule is in response to an Executive Order issued last October in which President Trump sought to, among other things, “expand access to more affordable health coverage by permitting more employers to form AHPs.” In an article recently published by Bloomberg Tax, Alden Bianchi explains the background and contend of this new and important regulation and offers some predictions about the rule’s future
In advance of issuing the that culminated in the promulgation by the Department of Labor of proposed expanding the availability of Association Health Plans, President Trump announced that one of the purposes of the order was to allow people to buy health insurance “across state lines.” This post examines the consequences of, the obstacles to, and the inevitable clashes occasioned by, the interstate insurance sales of group health insurance.
Recently proposed Department of Labor (Department) regulations governing Association Health Plans (AHPs) would, if made final, permit small employers to be regulated under more favorable, large group rules. The proposed regulations modify the rules governing fully-insured AHPs; they do not change the way that self-funded AHPs are regulated. But in the preamble to the proposal, the Department invites comments on whether the standards that govern fully-insured AHPs should be extended to self-funded AHPs. Such an extension would be a step into unchartered regulatory territory—which is the topic of this post.
In last week’s post we explained the changes made by a newly proposed Department of Labor regulation, the purpose of which is make it easier for small employers to band together to form “association health plans” (“AHPs”). In that post, we promised to examine the impact of the proposed regulation on the small group and individual health insurance markets, which we will do in this post.