“It’s important to realize that by supporting the hard work of entrepreneurs, you support their dreams, as well.”
– Hassan Rahim
We first discussed Association Health Plans (AHPs) back in February with the Join The Club post. As the Department of Labor and the Internal Revenue Service both role out their “final” rulings of President Trump’s Executive Order, one thing’s clear — small businesses are being protected, at least in business friendly states.
Here is the takeaway from the latest guidance:
“…the regulation facilitates the adoption and administration of AHPs and expands access to affordable health coverage, especially for employees of small employers and certain self-employed individuals. At the same time, the regulation continues to distinguish employment-based plans, the focal point of Title I of ERISA, from commercial insurance programs and other service provider arrangements.”
In other words, the policies that apply to applicable large employers (ALEs) do not apply to businesses of less than 50, even when your employees are purchasing healthcare from an AHP. There’s the added protection to employers large and small as these new plans have to comply with ERISA. If you think AHPs might be a good option for your business, contact a BenefitCorp consultant for more information.