The Department of Labor has taken significant steps to protect critical Affordable Care Act consumer protections through the rescission of the Association Health Plan Rule. The Employee Benefits Security Administration issued a final rule aimed at reinforcing healthcare protections for consumers in plans offered by small employers or available for purchase on the individual market.
According to Assistant Secretary for Employee Benefits Security Lisa M. Gomez, the decision to rescind the 2018 rule comes after the U.S. District Court for the District of Columbia invalidated certain provisions of the rule in 2019, citing them as inconsistent with the Administrative Procedure Act and in excess of the department's authority. Gomez stated, "The Department of Labor now believes that the provisions of the 2018 Association Health Plan Rule that the district court held as inconsistent with the Administrative Procedure Act and in excess of the department’s authority are, at a minimum, not consistent with the best reading of the statutory requirements governing group health plans."
The Biden-Harris administration's goal to help more Americans enroll in quality health coverage aligns with this decision, as the rescinded rule had allowed for the expansion of Association Health Plans that did not have to comply with critical consumer protections under the Affordable Care Act. By reversing the lax criteria set by the previous administration, the Department of Labor aims to ensure that consumers have access to quality coverage consistent with federal law.
The final rule issued by the Department of Labor not only reverses the 2018 rule but also resolves any uncertainty about the status of the standards it established. This move leaves in place longstanding pre-rule AHP guidance that has been supported and relied upon by numerous judicial decisions, reinforcing the commitment to upholding consumer protections under the Affordable Care Act.
