Recent Ruling on Association Health Plans

On May 2, 2019, Commissioner Afable released Bulletin 20190502, which acknowledges the federal court decision to invalidate the DOL’s new association health plan (AHP) rule. As background, the rule broadened the eligibility standards for a group of employers to be considered a “bona fide association” by allowing groups of unrelated employers to join associations and offer health coverage together.

This bulletin merely confirms that associations in Wisconsin can’t sponsor plans under the AHP’s new rules, and can only rely on the rules that were in place before. Additionally, as supported by Wisconsin statutes, insurers who have issued AHPs in accordance with the rules that have now been vacated must continue to pay claims for the full term of those plans.

This guidance does not present any new information. However, employers in Wisconsin that were looking to join an AHP should be aware that the eligibility for that AHP will have to be what it was under the DOL’s previous rules.

Bulletin 20190502 »