Department of Labor Response to District Court Decision on New AHP Regulation

The Department of Labor has released Q&A guidance to the public regarding their response to the recent District Court decision affecting association health plans. The guidance noted “We disagree with the District Court’s ruling and are considering all available options in consultation with the Department of Justice. The Administration will continue to fight for sole proprietors and small businesses so that they can have the freedom to band together to obtain more affordable, quality healthcare coverage.”

The government’s response to the District Court ruling is important on numerous fronts.

  1. Thousands of workers have already enrolled in association health plans
  2. New association health plans are preparing to enter the market
  3. Third parties seeking to facilitate this market through technology and services will wait on the sidelines until the legal dispute is resolved

As new information becomes available regarding the government’s strategy to respond to the adverse court decision, AssociationHealthPlans.com will make this information available through the AHP News section you are now reading. The same applies to news from other major stakeholders in this insurance market, whether private or political, who are seeking to preserve the benefits AHPs bring to small businesses and sole proprietors.

The full Department of Labor document can be reviewed at https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/faqs/ahp-q-and-a-court-ruling.pdf