The Employee Benefits Security Administration (EBSA) has rescinded a Trump-era regulation that allowed certain employer groups to offer health insurance coverage without complying with the consumer protections of the Affordable Care Act (ACA). This final rule, issued by the Department of Labor this week, reverses the criteria established by the Trump administration, making it easier for employers to be treated as “employers” when offering multiple-employer group health insurance. This move allows more employers to evade critical ACA consumer protections.
Lisa M. Gomez, Assistant Secretary for Employee Benefits Security, explained that the 2018 Association Health Plan Rule did not meet the statutory requirements governing group health plans. The department decided to rescind the entire rule in order to address any uncertainty about the standards it had established. This action aligns with President Biden’s directive to improve coverage comprehensiveness and ensure consumers have access to quality coverage consistent with federal law.
In 2019, a federal judge struck down the 2018 rule from the Trump administration. However, it was never fully implemented. Now, the Department of Labor believes that the core provisions of the rule are not consistent with ERISA’s statutory requirements governing group health plans. The decision to rescind the rule has received criticism from Virginia Foxx, who believes it moves Americans backwards in providing high-quality, low-cost healthcare options.
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