This Just In ...
New Association Health Plan Rules Deemed "Absurd"
A Washington, D.C. District Court judge's decision in State of New York, et. al. v. United States Department of Labor, et. al. is raising doubts about the future of association health plans (AHPS) for unrelated employer groups.
AHPs have been a way for similar business and employer trade associations to form associations in order to secure health care coverage that is less expensive than what they could purchase on their own. President Trump directed the federal government to expand access to AHPs and to disregard the requirement for businesses to be related. He also asked the DOL to reconsider its definition of "employer" under ERISA to allow smaller groups to participate.
On March 28, 2019, District of Columbia Judge John D. Bates ruled that major provisions of the DOL's final rule on AHPs were unlawful. He said that the rule's interpretation of "employer" to include working owners and groups without a true commonality of interest was unreasonable.
Judge Bates also called the changes "absurd" and said they were "clearly an end-run around the [Affordable Care Act]."
The DOL now has three options: rescind the rule; revise it so it falls in line with the judge's decision; or appeal the decision to the U.S. Court of Appeals.
This Just In ... New Association Health Plan Rules Deemed "Absurd"
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