Proposed DOL Rule Could Make Association Health Plans A Popular Option

The Department of Labor (DOL) has issued a proposed rule intended to expand health care coverage through association health plans, which would allow some small business to offer more affordable health care coverage to their employees. Under the proposed rule, these small business health insurance plans would not be required to cover the 10 essential health benefits — such as prescription drugs and maternity care — required by the Affordable Care Act (ACA).

However, many ACA rules would still apply to association health plans. Among the rules that would still apply, plans could not reject employers based on the health status of their workers, and individuals could not be charged different amounts based on their health. Changes included in the proposed rule would expand the definition of who can form and join an association. This would allow associations to form solely for the purpose of offering insurance and enrolling members.