Department of Labor Reverses Trump Era Relaxed Criteria for Association Health Plans

The Department of Labor has reversed the relaxed criteria established by the Trump administration for Association Health Plans (AHPs), which allowed more employers to offer health insurance coverage that did not comply with certain consumer protections under the Affordable Care Act (ACA). The final rule, issued this week, rescinds the 2018 AHP Rule, which was struck down by a federal judge in 2019 and never fully implemented.

Assistant Secretary for Employee Benefits Security Lisa M. Gomez explained that the department believes that the provisions of the 2018 rule were inconsistent with the Administrative Procedure Act and exceeded its authority. By rescinding the entire 2018 rule, the department aims to ensure compliance with federal law and improve the comprehensiveness of coverage.

Virginia Foxx, chair of the House Committee on Education and the Workforce, criticized the administration for moving backward rather than forward in providing Americans with more ways to access high-quality, low-cost health care. However, the administration’s decision to rescind the Trump-era regulation is part of an effort to ensure that consumers have access to quality coverage that complies with federal law.