Starting September 1, 2018, the Department of Labor (DOL) has issued a final rule that expands consumer availability of association health plans (AHPs). This rule levels the playing field for small businesses looking to band together and buy health insurance without regulatory limits that individual states and the Affordable Care Act (ACA) impose on smaller employers. Operating as an independent market, AHPs will be able to scale plans and provide more affordable benefits. Secretary of Labor Alexander Acosta believes it will help families and employee groups to have more choice, more access, and more coverage. According to Acosta, the final rule will also implement safeguards to enforce anti-discrimination protections for enrollees.
Under the rule, there are requirements for employers looking to form an AHP:
The DOL expects a substantial number of uninsured people will enroll in AHPs for its affordability. The U.S. Congressional Budget Office (CBO) predicts that 400,000 people will enroll and 3.6 million people will switch coverages.