Federal Spotlight: Federal Rules Released on Association Health Plans

June 21, 2018

The U.S. Department of Labor published its long-anticipated final rule on association health plans Tuesday, relaxing the requirements for small businesses to band together to create health care plans that skirt certain Affordable Care Act requirements. The final federal rule will take effect in phases, with an effective date of Sept. 1, 2018, for all associations to establish a fully insured AHP; Jan. 1, 2019 for existing associations that have already established an AHP and want to start up a self-funded plan; and April 1, 2019, for all other associations to establish a self-funded plan. The Iowa Legislature passed a bill authorizing such plans in Iowa during the 2018 legislative session, SF 2349, to provide additional health insurance options in the state. ABI recently commented on proposed Iowa Insurance Division state level rules implementing the plans.