By Leslie Small
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.
From Health Plan Weekly
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