New Final Rule on Association Health Plans Set to Overturn Trump-Era Expansion of Definition of ‘Employer’

The Department of Labor is set to issue a new final rule on association health plans, following a review by the White House. The final rule, known as 1210-AC16, was approved by the White House Office of Management and Budget on April 22.

The proposed rule from December 2023 seeks to overturn a previous rule put in place during the Trump administration in 2018, which had broadened the definition of “employer” to allow self-employed individuals and a greater number of small employers to join together in order to purchase health insurance. The new rule will have implications for how association health plans are structured and who is eligible to participate in them.

Small businesses and self-employed individuals have relied on association health plans for more affordable healthcare options, and the decision to rescind the previous rule is likely to impact many of them. The completion of the review process for the final rule marks a significant development in the ongoing debate over association health plans and their role in providing healthcare coverage for small businesses and the self-employed.

The implications of this decision will be closely watched in the coming days as the Department of Labor moves forward with its formal issuance of the new rule.