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DOL Issues Guidance on New Rule AHPs

DOL Issues Guidance on New Rule AHPs

By Ken Ruotolo, Chief Operating Officer, May 6, 2019, 2 Minute Read

On March 29, 2019, when Judge Bates of the Federal Court in the District of Columbia issued a decision invalidating the DOL’s new relaxed rules regarding AHPs (more on the ruling), it created uncertainty in the AHP market. Were AHPs established under the new rule still valid? Could they continue offering coverage to employers and employees insured under them? Could they continue to market and sell coverage?

The DOL and Department of Health and Human Services (HHS) provided much-needed clarity by announcing on April 29th that AHPs formed under the new rule:

So long as AHPs comply with this guidance, the DOL and HHS have said they will not take enforcement action.

In addition to these restrictions on existing, new-rule AHPs, the announcement made clear that:

This announcement from the DOL and HHS provides much-needed clarity on the impact of Judge Bates’ decision.

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