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Association Health Plan Expansion Will Ease Burden

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June 28, 2018

The Department of Labor recently issued a final rule providing that, as of September 1, 2018, more employers will be able to participate in Association Health Plans ("AHPs"), meaning a group health plan established by multiple employers that come together to purchase a plan. Prior to issuance of the final rule, employers could only come together if they had a narrowly-defined "commonality of interest"; the new rule provides several additional ways this "commonality of interest" can be met:

  1. The employers are in the same trade, industry, line of business or profession; or
  2. Each employer has a principal place of business in the same region that does not exceed the boundaries of a single state or metropolitan area.

Of course, and perhaps unsurprisingly given the current political climate, the New York and Massachusetts attorneys general already indicated that they will sue over the final rule, and more states may join. For the time being, however, AHPs may prove to be a boon for employers considering new or alternate coverage for their employees.

Questions? Contact Attorney Peter Hansen in our St. Charles office at (630) 377-1554 or by email at pehansen@wesselssherman.com

Contact:
Peter Hansen, Associate Attorney
(630) 377-1554