The U.S. Department of Labor is appealing a federal court decision striking down an agency rule that would have expanded the use of association health plans.

The Labor Department filed a notice of appeal on April 26 with the U.S. District Court of Appeals for D.C. At issue is a March 28 ruling by the U.S. District Judge John Bates that declared the agency rule an unlawful "end run" around the Affordable Care Act.

Democratic attorneys general in 11 states and the District of Columbia had sued the federal government to invalidate the rule, which was prompted by a 2017 executive order signed by President Donald Trump shortly after a Republican-led Congress failed to overturn ACA. At least one state—Vermont—has ordered a halt to any expansion of AHPs while the district court ruling was in effect.

Several associations support the Trump administration rule, saying AHPs provide small businesses an affordable vehicle to offer employee health insurance. In addition, the U.S. Chamber of Commerce has created an online database where business can find AHPs available to them. https://uscham.com/2POjsiZ

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