ACAP Comments on 2023 Association Health Plans Proposed Rule

On February 20, ACAP submitted comments on the 2023 Association Health Plans Proposed Rule.

In the letter, ACAP shared appreciation for the Administration’s desire to strengthen the integrity of the Marketplaces, and chose to respond to a subset of proposals in this rule that are particularly relevant to Safety Net Health Plans.

Summarized comments include the following:

Proposal to Rescind 2018 AHP Rule: ACAP strongly supports the proposal to rescind the 2018 Association Health Plan (AHP) rule in its entirety. We ask the Department of Labor (DOL) to finalize the rule this year to provide finality and certainty about the consequences of the U.S. district court’s decision that the rule was improper and exceeded the DOL’s statutory authority.

• Alternatives to Complete Rescission: Ultimately, we suggest regulations are the best approach to provide stability and clarity to states, employers, and other stakeholders regarding what is a permissible AHP qualifying for single plan status under ERISA. However, simply codifying pre-rule guidance is a missed opportunity to the important work of reconciling this coverage option with the significant developments in the health insurance market more broadly that have taken place since much of the pre-rule guidance has been developed (e.g., ACA market reforms, health insurance Exchanges now insuring over 21 million Americans, ARPA and IRA-authorized enhanced premium tax credits, Medicaid unwinding, and individual coverage HRAs). A comprehensive evaluation of the definition of “employer” alongside the market dynamics and other coverage options for individuals is in order prior to rulemaking.


Read expanded comments, and the letter in full,  via the sidebar on the right.