Trump Administration Releases Final Rule on Association Health Plans

Earlier this week, the Department of Labor (DOL) released its final rule regarding Association Health Plans (AHPs). The rule would expand access to AHPs and let small businesses and trade groups band together to purchase health insurance or self-insure. The new rule also allows AHPs to form based on a geographic test such as a common state, city, county or a metropolitan area across state lines.

The DOL first proposed the rule back in January and the Big “I” submitted comments on the proposal back in March. The Big “I” has been in contact with the White House and the DOL throughout the rulemaking process and participated in a call with senior Administration officials earlier this week.

The Big “I” focused on two points in its comment letter. First, independent agents and brokers play an important role in placing health insurance, and as such, any changes to AHP regulations must maintain an appropriate role for agents and brokers. Second, the DOL should defer to state insurance regulation—particularly in the vital areas of AHP solvency regulation and consumer protection. The final rule acknowledges that agents and brokers play an important role in the placement of health insurance.

The rule also lays out three important dates for AHP expansion. All associations, new or existing, may establish a fully insured AHP on Sept. 1, 2018. Existing associations that sponsored an AHP on or before the date the final rule was published may establish a self-funded AHP on Jan. 1, 2019. All other associations, new or existing, may establish a self-funded AHP on April 1, 2019.

Wyatt Stewart is Big “I” senior director of federal government affairs.