DOL Issues Final Rule Rescinding Association Health Plan Regulations

The U.S. Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) has issued a final rule revoking its Association Health Plan (AHP) regulations. The agency expects to replace these regulations with a stricter version that provides more employee protections.

The group health plan market consists of small and large group markets based on the employer's size. Under the Affordable Care Act (ACA), different rules apply to small and large group markets. For example, in the small group health plan market, health insurance must be "community rated." The plan must meet rigid underwriting requirements calculated to avoid varying premiums based on health factors to meet this definition. Furthermore, small group market plans must also cover all essential health benefits (EHBs) without annual or lifetime limits. However, these rules are inapplicable to plans within the large group health plan market.