Tuesday, April 9, 2019

Judge Strikes Down Association Health Plan Rule, Putting Market in Holding Pattern


U.S. District Court Judge John Bates' recent ruling, which struck down two key provisions of the Trump administration’s association health plan (AHP) rule, has stymied some organizations' plans to take advantage of the regulation's added flexibilities, experts tell AIS Health. However, existing AHPs formed under the rule are probably not rushing to shut down their operations.
Bates' ruling essentially sided with 12 attorneys general who filed suit against the Trump administration's regulation, which expanded AHPs' scope by allowing more individuals to get coverage through them and allowing associations to form among, for example, unrelated businesses in the same geographic area. The lawsuit argued the new rule violates both the Affordable Care Act and the Employee Retirement Income Security Act.
"For the existing AHPs, particularly the ones operating underneath the new guidance, they're going to continue to operate while they wait to see if the court decision is stayed waiting appeal," says Kev Coleman, president and founder of AssociationHealthPlans.com.
"With that said, new AHPs that were preparing to launch underneath the regulation will likely pause their plans as they wait for the situation to play out," he says. In addition, third-party vendors such as brokers and firms offering claims analysis solutions "will likely slow or suspend investments."
As for insurers that are working or planning to work with AHPs, "I would think that [they] are reconsidering, strongly, some of these arrangements," says Fritz Busch, an actuary at Milliman, Inc.

No comments:

Post a Comment