The Department of Labor has recently reversed a rule implemented during the Trump administration that allowed small businesses and self-employed individuals to enroll in association health plans that did not meet all the standards of the Affordable Care Act. This move signifies a shift in policy priorities from the previous administration towards strengthening healthcare protections for small businesses and self-employed individuals.
The Biden administration’s final rule on association health plans, identified as RIN:1210-AC16, was approved by the White House and is scheduled to be published in the Federal Register on April 30th. This new rule issued by the DOL replaces the previous 2018 regulation under Trump which had broadened the definition of “employer” to enable businesses to form groups and enroll in cheaper health plans. However, this rule did not ensure that individuals had access to comprehensive health coverage that adhered to the regulations set forth by the Affordable Care Act.
The updated rule aims to address this issue by tightening eligibility criteria for association health plans. Under this new regulation, only associations with at least 50% employer participation will be able to offer such plans, and these plans must comply with all ACA requirements. Additionally, employers who participate in these associations must provide proof of insurance coverage for their employees or face penalties under the Employer Responsibility Provision (ERP).