Review of State and Federal Regulation of Association Health Plans

On Aug. 30, 2018, Commissioner of Insurance Donelon issued Advisory Letter 2018-03 (“the Letter”). The Letter discusses the state and federal regulation of association health plans (AHPs), after the DOL’s final rules on AHPs were issued this summer. As background, AHPs are MEWAs and can fall under the jurisdiction of both federal and state law. The Letter identifies the different types of AHPs and how Louisiana law applies to them.

The Letter essentially confirms that Louisiana still has the same regulatory authority over MEWAs and AHPs as it did before the DOL published its final rule. Specifically, Louisiana still requires self-insured AHPs to be licensed under Louisiana state law. While fully insured AHPs don’t have to be licensed, the insurer that issues the policy must file the association’s constitution, by-laws, membership application, agreement and brochure for review when filing for a health insurance contract.

The Letter also includes a chart that lists some of the laws and regulations applicable to MEWAs and whether or not the different types of MEWAs have to comply. It ends by listing the applicability dates of the DOL’s final rule.

While this Letter doesn’t necessarily provide any new information, it’s a reminder to entities that might want to establish an AHP for Louisiana employers that they must comply with Louisiana law.

James J. Donelon. “Advisory Letter 2018-03.” Laws and Bulletins, »