The Department of Labor has issue a proposed rule providing direction for sole
proprietors and businesses to set up Association Health Plans
(AHPs). This rulemaking stems from President Trump's October
12, 2017 Executive Order 13813, "Promoting
Healthcare Choice and Competition Across the United States,"
which seeks to expand healthcare choice by modifying certain
insurance regulations. A key component of this order is the
promotion of AHPs, which allow individuals and employers to
collectively purchase insurance.
To that end, the DOL's proposed rule would amend the
regulations under Title I of the Employee Retirement Income
Security Act (ERISA) to make it easier for employers to band
together and be treated as an "employer" sponsor of a
single multiple-employer "employee welfare benefit plan"
and "group health plan" under ERISA. By doing so, small
businesses in particular gain better leverage to either self-insure
or purchase large group health insurance.
