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Court Rejects Changes to Association Health Plans

A federal court has struck down a regulation expanding the availability of association health plans (AHPs).

In June 2018, the Department of Labor (DOL) finalized additional options for employer groups or associations to establish AHPs offering coverage to member employees under a single plan. Eleven states sued DOL, claiming the expansion of AHPs would weaken insurance markets, as these plans are exempted from many of the requirements under the Affordable Care Act (ACA).

The United States District Court for the District of Columbia on March 28 ruled that AHP expansion illegally circumvents the ACA and violates the intent of federal insurance laws.

America’s Essential Hospitals in March 2018 commented on the proposed changes to AHPs, urging federal officials to ensure such plans have proper oversight and cover all necessary services for beneficiaries.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Rachel Schwartz is a policy associate at America's Essential Hospitals.

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