The United States Department of Labor (DOL) issued final rules on Association Health Plans (AHP). Association Health Plans are group health plans that employers and associations offer to provide health coverage for their employees. They allow small employers to band together to purchase coverage, which may be less expensive than purchasing the coverage individually.
The new rule expands the ability of more groups and associations to form AHPs, based on a common geography or industry. For example, an AHP could offer coverage to some or all employers in a state, city, county, or metropolitan area, or could offer coverage to businesses in a trade group or industry group throughout the country.
AHPs must follow the following guidelines:
The recent regulations become effective September 1, 2018 for existing insured plans, January 1, 2019 for existing self-insured plans, and April 1, 2019 for any other new AHPs.