» AHP Coverage Can Generally Be Maintained Through Plan Year or Term

DOL Appeals Court Decision, Issues Policy Statement

The U.S. Department of Labor (DOL) has appealed a March federal court decision (PDF) striking down parts of the DOL rule on association health plans (AHPs). The rule had expanded employers’ ability to join in AHPs to purchase health coverage. The agency also issued a statement that employers currently participating in insured AHPs can generally maintain that coverage through the end of the current plan year or contract term, meaning their employees can generally keep their coverage.

At the end of the plan year, issuers will only be able to renew AHP coverage that complies with the relevant market requirements for that employer’s size (such as, for small employers, the essential health benefits requirement and premium rating rules).

In the interim, the DOL said it will not pursue enforcement actions for violations stemming from actions taken before the court’s decision in good faith reliance on the AHP rule. The agency nevertheless urged employers to carefully consider their near-term coverage options.

For more information, please contact the DOL.

Posted by Hallier Benefit Advisors in Healthcare Reform Updates