W EEKLY EDITION JAN 10, 2018
Proposed Regulatory Change
Could Provide Health Insurance
for PSAI Member Companies
By PSAI Executive Director Karleen Kos
The Trump administration proposed new regulations last
week to expand association health plans (AHPs) with the goal
of creating more access to affordable health coverage for
small businesses and their employees.
The proposed rules st em from an executive order President Trump issued in October directing federal agencies to
loosen restrictions under the federal ERISA law to allow groups that qualify as associations to sponsor insurance plans
across state lines. We covered the order in o ur October 18 issue of Association Insight (see page 6 here ).
"Expanding access to AHPs would provide more affordable health insurance options to many Americans, including
hourly wage earners, farmers, and the employees of small businesses and entrepreneu rs that fuel economic growth,"
the Trump directive states.
President Trump mentioned AHPs during an interview he gave over the holidays, and said he anticipated the expansion
of AHPs would end up covering "millions and millions of people."
The American Society of Association Executives (ASAE) has long believed that association health plans could expand
health care choices for small businesses and franchise owners if federally regulated. It's not immediately clear from the
rules issued last week if all 50 1(c)(6) trade associations like the PSAI would be eligible to sponsor an AHP under the new
rules. If so, it could open the door to more accessible insurance coverage for PSAI member companies and their
employees. The PSAI is a member of ASAE, and ASAE will be submitting comments on AHPs as requested by the Labor
Department. We fully expect ASAE to strongly support AHPs.
Companies and individual associations can also comment on the proposed plan. Comments on the proposal are due
within 60 days and can be su bmitted electronically at www.regulations.gov by referencing the Regulatory Identifier
Number RIN 1210 - AB85. The PSAI will share ASAE's comments on the proposed rules with the PSAI community as soon
as they are written.
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