Labor Department Proposes Expansion of Association Health Plans to Potentially Lower Insurance Costs for Some Workers
The U.S. Labor Department under President Donald Trump is preparing a new proposal aimed at expanding access to association health plans (AHPs) by redefining the term 'employer' in federal benefits law. This move could allow more self-employed workers and small businesses to obtain lower-cost insurance through membership organizations, potentially reducing premiums for those who qualify. This marks the second attempt under Trump's administration after a similar 2018 proposal was struck down by a court in 2019 and later rescinded during Biden’s term. Experts suggest that while AHP expansion could benefit some workers with lower costs, it might also raise premiums for others enrolled in ACA marketplaces due to potential shifts in risk pools. The rule is currently under review at the Office of Information and Regulatory Affairs but has not yet been made public. The proposal comes amid rising health insurance costs across all sectors, including a projected 15% median premium increase by insurers offering coverage through the ACA marketplace.
Topics: ACA marketplace employer definition health insurance self-employed workers