Federal rule change could pave way for association health plans

The federal Department of Labor on Thursday released proposed new rules that proponents say will make it easier for businesses to band together in “associations” to buy health insurance  (Source: “Trump Administration Rule Paves Way For Association Health Plans,” Kaiser Health News, Jan. 5, 2018)

The new rules, supporters say, will lead to more affordable choices for some small businesses and sole proprietors, likely starting in 2019. Association coverage “should be cheaper and arguably just as comprehensive” as what many employers can now buy, said Christopher Condeluci, a Washington, D.C. attorney who specializes in employee benefits and has served as the tax and benefits counsel to the U.S. Senate Finance Committee.

Critics, though, are wary about whether the plans will provide consumers adequate protection. “This approach allows associations to offer coverage that doesn’t have to come into compliance with all the critical consumer protections that would otherwise apply to small employers and individuals. It might not be as comprehensive,” said Kevin Lucia, project director at Georgetown University’s Health Policy Institute.

The proposal — which now faces a 60-day comment period — broadens the definition of those eligible to join or form such groups and rolls back some restrictions on association health plans set by the Obama administration.