CEO DATELINE - State attorneys general seek to overturn association health plan rule
CEO DATELINE - State attorneys general seek to overturn association health plan rule
- July 27, 2018 |
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Walt Williams
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A coalition of attorneys general from 11 states and Washington, D.C., are seeking to block implementation of a new Trump administration rule allowing more businesses to use association health plans to avoid certain insurance coverage mandates.
A lawsuit filed July 26 in U.S. District Court for D.C. alleges the Department of Labor rule "is nothing more than an unlawful end run around the consumer protections enshrined in the Affordable Care Act," said New York State Attorney General Barbara Underwood, a Democrat who is spearheading the coalition. She added the rule is "part of President (Donald) Trump's continued efforts to sabotage our health care system."
Trump last year ordered DOL to issue rules allowing more businesses and individuals to use association health plans to avoid certain ACA coverage requirements and therefore lower coverage costs. The order came after congressional Republicans failed to repeal the federal health care law.
Many business groups supported Trump's action but few have implemented their own association health plans since the rule was implemented earlier this year. The National Federation of Independent Business—a major supporter of expanding association health plans—gave up on the idea after finding the DOL rule unworkable, Politico reported.
The lawsuit alleges that DOL violated the Administrative Procedures Act when it promulgated the rule, according to the coalition. It also argues the rule violates both ACA and the Employment Retirement Income Security Act.
All 12 attorney generals who brought the lawsuit are Democrats. New York State Gov. Andrew Cuomo also weighed in, saying in a statement, "we have zero tolerance for any action that undermines the Affordable Care Act and puts health care coverage at risk for thousands of people." https://on.ny.gov/2Ah8ePI
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