United States of Care Responds to Proposed Rule on Association Health Plans

On February 20, 2024, United States of Care (USofCare) submitted comments in response to the Employee Benefits Security Administration’s (EBSA) proposed rule entitled “Definition of “Employer”-Association Health Plans.”

USofCare is supportive of the proposed rule, which seeks to rescind a 2018 regulation from the Department of Labor that weakened the requirements for an association to be considered an employer under the Employer Retirement Income Security Act (ERISA). Under the 2018 regulation, qualifying Association Health Plans (AHPs) do not have to adhere to the Affordable Care Act (ACA) standards required of other insurers, such as coverage of Essential Health Benefits and prohibition from excluding or charging higher premiums to employers on the basis of age, gender, occupation, or other factors. Furthermore, many AHPs qualify as Multiple Employer Welfare Arrangements (MEWAs), plan types that have a documented history of fraud and insolvency. As millions of people lose coverage due to the Medicaid redeterminations process, it is critical to rescind the 2018 rule so that people are protected from fraudulent, insolvent plans and have insurance that meets their health care needs comprehensively.

USofCare appreciates the opportunity to comment on the proposed rule.