The Department of Labor has recently reversed a rule implemented during the Trump administration that allowed small businesses and self-employed individuals to enroll in association health plans that did not meet all the standards of the Affordable Care Act. The Biden administration’s final rule on association health plans, identified as RIN:1210-AC16, was approved by the White House and is scheduled to be published in the Federal Register on April 30th.
The new rule issued by the DOL replaces the previous 2018 regulation under Trump which had broadened the definition of “employer” to enable businesses to form groups and enroll in cheaper health plans. The purpose of the updated rule is to ensure that individuals have access to comprehensive health coverage that adheres to the regulations set forth by the Affordable Care Act. This decision by the Department of Labor signifies a shift in policy priorities from the previous administration towards strengthening healthcare protections for small businesses and self-employed individuals.
The new rule aims to restore balance between affordability and quality, ensuring that people have access to affordable health insurance while also ensuring it meets their needs. The Biden administration believes that this will help create a more stable insurance marketplace for Americans who need coverage. This change will also help reduce premiums for small businesses and self-employed individuals, making healthcare more accessible and affordable for them.
