DOL Finalizes Expansive Association Health Plan Rule

The U.S. Department of Labor (DOL) recently finalized its much-anticipated rule which expands opportunities for small businesses and certain self-employed individuals to band together to obtain more affordable group health coverage under an association health plan (AHP). Published in the Federal Register on June 21, 2018, the final rule (83 Fed. Reg. 28912) is largely the same as the proposed rule, which was published on January 5, 2018, although the DOL made some notable modifications in response to the more than 900 comments received from the public.

Background

Section 3(5) of the Employee Retirement Income Security Act of 1974 (ERISA) defines "employer" to mean "any person acting directly as an employer, or indirectly in the interest of an employer, in relation to an employee benefit plan; and includes a group or association of employers acting for an employer in such capacity" (emphasis added). Under DOL guidance that existed prior to the proposed rule or