Association Health Plans
Last year, the Trump administration issued new regulations relating to Association Health Plans (AHPs). The primary intent of the regulations was to allow small employers to more easily band together to purchase health insurance coverage. The regulations not only allowed for AHPs to be established by employers in the same industry, but the regulations also allowed AHPs to be established by employers in a similar geographic location (e.g. city, state, metropolitan area).
Last year, the Department of Labor (DOL) issued new regulations pertaining to Association Health Plans (AHPs). The rules relaxed previously issued regulations by allowing AHPs to be established for employers who are in the same industry or geographic location. AHPs are regulated like large group health plans which are exempt from some of the Affordable Care Act (ACA) market reforms, including the requirement to cover essential health benefits.
There’s never a dull moment when it comes to the Affordable Care Act (ACA). Some people love the law, some people hate it, and others find themselves somewhere in between. However, there’s one thing that’s for certain. The rules are constantly being challenged or changed. Here are three key developments that occurred last week.
The Internal Revenue Service (IRS) has revised its frequently asked questions (FAQ) information pertaining to the Employer Mandate. More specifically, the IRS has confirmed that an employer who provides coverage through an association health plan (AHP) has no relevance to the Employer Mandate. An employer isn’t dragged into the Employer Mandate requirements simply because they provide coverage through an AHP. Only employers with 50 or more full-time equivalent employees in the prior calendar year will be subject to the Employer Mandate. Question and answer #18 from the FAQ is shown below.
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