Definition of “Employer” Association Health Plans

Definition of “Employer” under Section 3(5) of ERISA-Association Health Plans

This final regulation is effective on August 20, 2018.   Applicability dates:  The Department has established an applicability date of September 1, 2018, for fully-insured AHPs, an applicability date of January 1, 2019, for existing self-insured AHPs complying with the Department’s pre-rule test, and an applicability date of April 1, 2019, for new self-insured AHPs formed pursuant to this final rule.
The following is cited from the U.S. Department of Labor and may be read here:
Expanding Access to Quality, Affordable Health Coverage for Millions of Americans Employed by Small Businesses
On June 19, 2018, the U.S. Department of Labor expanded access to affordable health coverage options for America’s small businesses and their employees through Association Health Plans.
Association Health Plans work by allowing small businesses, including self-employed workers, to band together by geography or industry to obtain healthcare coverage as if they were a single large employer.
Association Health Plans will also be able to strengthen negotiating power with providers from larger risk pools and greater economies of scale.
The Department of Labor expanded access to Association Health Plans as a result of President Donald J. Trump’s Executive Order “Promoting Healthcare Choice and Competition Across the United States.”

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