On June 19th, the Department of Labor (DOL) finalized its rule to ease requirements for the formation of Association Health Plans (AHPs). The rule will modify the definitions of “employer” and “employee” under the Employee Retirement Income Security Act (ERISA), and as well as the definition of “common economic interest.” These changes will make it easier for multiple small employers to form a single AHP to purchase coverage in the large group market and will allow working owners without other employees (including sole-proprietors) and their families to join AHPs. The changes will also allow AHPS to form based on a region rather than a common industry.
This document summarizes key provisions of the rule. The final rule is available here.