The Department of Labor is set to release a final rule that will determine who is eligible to use association health plans. These plans have been praised by small businesses and self-employed individuals for being more affordable compared to other employer-sponsored plans. However, the proposed rule from December 2023 seeks to overturn a rule put in place during the Trump administration in 2018, which broadened the definition of “employer” and allowed more small employers and self-employed individuals 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. This decision may impact many small businesses and self-employed individuals who have relied on these plans for more affordable healthcare options. 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 White House Office of Management and Budget approved the final rule, known as 1210-AC16, on April 22. It is expected to be officially issued by the Department of Labor in the near future. As such, it is important for those affected by this decision to closely monitor any updates or changes that may occur as a result of this new rule’s implementation.
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