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ARTICLE · 10 JANUARY 2018

Issue 117: DOL Issues Proposed Rules On Association Health Plans

This is the one hundred and seventeenth issue in our series of alerts for employers on selected topics on health care reform.

United StatesEmployment and HR

This is the one hundred and seventeenth issue in our series of alerts for employers on selected topics on health care reform. (Click here to access our general summary of health care reform and other issues in our series.)  This series of Health Care Reform Management Alerts is designed to provide an in-depth analysis of certain aspects of health care reform and how it will impact your employer-sponsored plans.

In October 2017, President Trump issued Executive Order 13813 directing the Department of Labor (DOL) to propose rules expanding access to health coverage by allowing more employers to form association health plans (AHPs). On January 4, 2018, in response to this directive, the DOL proposed rules which would allow employers to form an AHP on the basis of geography or industry. In general, the rules would benefit small employers, but large employers could potentially realize cost savings or administrative efficiencies from using an AHP. 

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