2024 Pay or Play Affordability Percentage

Update on Association Health Plans (AHPs)

On June 21, 2018, the Department of Labor (DOL) issued a final rule that gave small businesses more freedom to join together as a single group to purchase health insurance in the large group market or to self-insure. These benefit arrangements are called association health plans (AHPs).

By forming AHPs, small employers can avoid certain Affordable Care Act (ACA) reforms that apply to the small group market. However, in exchange for lower premiums, AHPs may cover fewer benefits. Because AHPs are also regulated at the state level, the availability of these plans depends on each state’s regulatory approach.

UPDATE: On March 28, 2019, a federal district court ruled that key parts of the DOL’s final rule on AHPs are invalid. The DOL is appealing the district court’s ruling to a higher court.


Click here for additional information. Questions? Contact Creative Benefits, Inc. at 866-306-0200.