The Biden-Harris administration has announced a final rule issued by the Department of Labor’s Employee Benefits Security Administration (EBSA) that aims to enhance healthcare protections for consumers in plans offered by small employers or available for purchase on the individual market. This rule is in line with the administration’s goal of increasing access to quality health coverage for more Americans.
In addition to cracking down on junk insurance with a recent final rule on short-term, limited-duration insurance, the Biden-Harris administration has reversed lax criteria put in place by the Trump administration that allowed a group or association of employers to be treated as the “employer” when offering multiple-employer group health insurance. This change made it easier for employers to offer coverage that evaded critical ACA consumer protections.
The Department of Labor has also rescinded the 2018 Association Health Plan Rule, which expanded the availability of Association Health Plans (AHPs). AHPs were not required to comply with certain consumer protections under the Affordable Care Act (ACA). Assistant Secretary for Employee Benefits Security Lisa M. Gomez explained that EBSA no longer believes that provisions of the 2018 AHP Rule are consistent with statutory requirements governing group health plans. The department is rescinding the entire 2018 rule to eliminate any uncertainty about its status and maintain longstanding pre-rule AHP guidance that has received consistent support from judicial decisions.
This action aligns with President Biden’s directive to improve coverage comprehensiveness and ensure consumers have access to quality coverage in accordance with federal law. By taking these steps,
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