States Left Wondering About Status of Association Health Plans

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On March 28, 2019, District Court Judge John Bates invalidated federal rules that allowed for the expansion of Association Health Plans (AHPs) because they served only to circumvent the requirements of the Patient Protection and Affordable Care Act. The federal government has not yet acted in response to the District Court’s ruling, which has left association health plan administrators and state insurance regulators with great uncertainty about the continuing validity of these plans.

Timothy Jost, a health law professor at Washington and Lee University, has asserted that without the federal regulations, the existence of these plans is illegal until the federal government seeks a stay on the District Court’s ruling. However, no enforcement action has been taken yet, as stakeholders anticipate the District Court’s ruling will be appealed. Some states that are hostile to AHPs may begin enforcement action against them soon, while other states who are in favor of this type of coverage may look the other way. Aimed Alliance opposes the availability of substandard insurance plans like AHPs and we will continue monitoring this issue. Continue reading.

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