GOP Rep proposes legislation blocking Biden from rescinding Trump rule that expanded association health plans
What did Rep. Tim Walberg's legislation aim to block?
Rep. Tim Walberg's legislation aimed to block the Department of Labor's decision to rescind the Trump administration rule that expanded association health plans (AHPs). The Trump-era policy allowed small businesses to join together to receive bulk rates for health care costs, similar to larger corporations. Walberg's proposal sought to prevent the Biden administration from gutting AHPs, which provided savings of up to 50% on health care costs for some employees.
Why did the Department of Labor decide to rescind the 2018 AHP rule?
The Department of Labor decided to rescind the 2018 AHP rule as it determined that the core provisions of the rule were not consistent with the best reading of ERISA's statutory requirements governing the definition of "employer" for purposes of establishing group health plans. The rescission aimed to resolve uncertainties and reexamine the criteria for forming AHPs, ensuring guidance consistent with ERISA.
How much could some employees save on health care under AHPs?
Some employees could save up to 50% on health care costs under Association Health Plans (AHPs), as they allow small businesses to band together and receive the bulk rate that bigger businesses can obtain. AHPs have produced savings of up to 29% on average while in effect, benefiting both small businesses and their employees.