The Department of Labor is set to release a final rule known as 1210-AC16, which was approved on April 22 by the White House Office of Management and Budget. This rule aims to revoke a 2018 Trump-era rule that expanded the definition of “employer”. Under the new rule, self-employed individuals and small employers will no longer be able to pool their resources together to purchase health insurance at a more affordable rate.
The proposed change was intended to provide more options and cost savings for individuals and businesses seeking health insurance coverage. However, critics argue that this expansion would have made it more difficult for small businesses to compete with larger corporations on pricing.
The White House has completed its review of the final rule regarding association health plans (AHPs), which are seen as an affordable option for small businesses and self-employed individuals compared to traditional employer-sponsored plans. The final rule, known as 1210-AC16, was approved on April 22 by the White House Office of Management and Budget. It is expected to be officially released in the near future by the Department of Labor.
AHPs allow small business owners and self-employed individuals to come together and pool their resources to purchase health insurance at a lower cost than if they were purchasing individual policies. This option has been popular among small business owners who may not have had access to employer-sponsored health plans before.
However, opponents argue that AHPs can lead to weaker regulations on health insurers and reduced consumer protections. They also point out that AHPs may not always offer comprehensive coverage or may exclude certain pre-existing conditions or treatments.
Despite these concerns, proponents of AHPs argue that they provide an important option for small businesses and self-employed individuals who may not have been able to afford traditional employer-sponsored plans otherwise. As such, it remains unclear how the final rule will impact this market segment in the long term.
Overall, while the proposed changes aim to provide more options and cost savings for individuals seeking health insurance coverage, there are still concerns about their potential impact on both consumers and employers. As such, further review is needed before any official changes can be made.
