JGS Insurance Alert - DOL Finalizes Rule to Expand Association Health Plans

03 July 2018 By Barry E. Fields

The Department of Labor (DOL) released a final rule that gives businesses more freedom to join together as a single group to purchase health insurance in the large group market. These benefit arrangements are called Association Health Plans (AHPs).  According to the DOL, this will provide employers with more affordable health insurance options.  However, in exchange for lower premiums, AHPs may cover fewer benefits.
Prior to this executive order, the criteria that must be satisfied for a group of employers to sponsor an AHP were very narrow.  The final rules make it easier for employers to join together to purchase health insurance.  However, just because the legislation reduces the requirements for creating an AHP doesn’t mean that insurance carriers will be any more receptive to covering these groups than in the past.
What many employers do not realize is there are currently a few existing Association Health Plans available in the New Jersey market.  These programs utilize the largest networks of participating providers and are viable alternatives to the traditional carriers.
As always, please let me know if you have any questions or would like additional information.

Barry E. Fields
Vice President, Employee Benefits

Cell: 908-406-7000 | Fax: 732-834-0233
101 Crawfords Corner Road, Suite 1300, Holmdel, NJ 07733

Last modified on Tuesday, 31 July 2018 16:24

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