White House Completes Review of Association Health Plan Eligibility Rule, Prompting Major Debate

In a major development in the ongoing debate over association health plans, the White House has completed its review of a final rule that will determine who is eligible to participate in these plans. The final rule, known as 1210-AC16, was approved by the White House Office of Management and Budget on April 22 and is expected to be officially issued in the near future by the Department of Labor.

The proposed rule from December 2023 seeks to overturn a rule put in place during the Trump administration in 2018, which broadened the definition of “employer” to allow self-employed individuals and a greater number of small employers to join together in order to purchase health insurance. This new rule will have implications for how association health plans are structured and who is eligible to participate in them. The decision to rescind the previous rule is likely to impact many small businesses and self-employed individuals who have relied on association health plans for more affordable healthcare options.

Overall, the completion of the review process for the final rule marks a significant development in the ongoing debate over association health plans and their role in providing healthcare coverage for small businesses and the self-employed. The implications of this decision will be closely watched in the coming days as the Department of Labor moves forward with its formal issuance of the new rule.