CEO DATELINE - Vermont halts growth of association health plans
CEO DATELINE - Vermont halts growth of association health plans
- April 24, 2019 |
-
Walt Williams
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
Association health plan providers in Vermont must stop advertising and enrolling new members until a federal court dispute concerning the legality of such plans is settled, the state's Department of Financial Regulation announced Tuesday.
President Donald Trump signed an executive order in 2017 directing the U.S. Department of Labor to allow more businesses to join together through AHPs to avoid certain Affordable Care Act coverage requirements and purchase employee health insurance at a lower cost. However, in a March 28 ruling, U.S. District Judge John Bates said the administration's action was an unlawful end run around the ACA. Democratic attorneys general in 11 states and the District of Columbia had sued the federal government to invalidate the Labor Department rule.
Vermont isn't one of the states in the lawsuit but Democratic lawmakers there have sought to limit the expansion of AHPs through legislation currently before the state Senate. And last year, the Department of Financial Regulation, or DFR, issued an emergency rule stating the DOL rule doesn't pre-empt the state's ability to regulate AHPs.
In Tuesday's bulletin, DFR said no new advertising nor enrollment could occur while the district court decision remains in effect, although insurers must continue to honor existing AHP policies and claims. The agency's decision also applies to multiple employer welfare arrangements, or MEWAs.
"Until such time as the court's decision is stayed or vacated, however, the department lacks a legal basis on which to approve new AHPs or MEWAs, and existing AHPs and MEWAs do not have the authority to enroll new employer groups or market coverage to potential new groups," DFR said. http://bit.ly/2PqKCMt
As for DOL, the agency said in Q&A posted on its website that it disagrees with the district court ruling and is exploring its legal options. However, it has yet to appeal the decision. http://bit.ly/2W3bCUF
MORE CEO DATELINE