Page 21 - January 2018

DOL Issues Proposed Rule Regarding being covered by the employer group’s or
Association Health Plans. association’s health plan. The goal of the rulemaking
is to expand access to affordable health coverage,
The Department of Labor (DOL) proposed a especially among small employers and self-employed
regulation under Title I of the Employee Retirement individuals, by removing undue restrictions on the
Income Security Act (ERISA) that would broaden the establishment and maintenance of association health
criteria under ERISA section 3(5) for determining plans under ERISA. The proposed regulation would
when employers may join together in an employer affect such association health plans, health coverage
group or association that is treated as the “employer” under these health plans, groups and associations of
sponsor of a single multiple-employer “employee employers sponsoring such plans, participants and
welfare benefit plan” and “group health plan” as beneficiaries with health coverage under these plans,
those terms are defined in Title I of ERISA. By health insurance issuers, and purchasers of health
treating the association itself as the employer sponsor insurance not purchased through association health
of a single plan, the regulation would facilitate the plans. Comments are due 03/06/2018. The proposed
adoption and administration of such arrangements. rule may be viewed at:
The regulation would modify the definition of https://www.gpo.gov/fdsys/pkg/FR-2018-01-
“employer,” in part, by creating a more flexible 05/pdf/2017-28103.pdf. Federal Register, Vol. 83,
“commonality of interest” test for the employer No. 4, 01/05/2018, 614-636.
members than DOL had adopted in sub-regulatory
interpretive rulings under ERISA section 3(5). At the DOL Requests Comment on Information
same time, the regulation would continue to Collection.
distinguish employment-based plans, the focal point
of Title I of ERISA, from mere commercial insurance DOL announced it seeks comment on the information
programs and administrative service arrangements collection titled Investment Advice Participants and
marketed to employers. For purposes of Title I of Beneficiaries. DOL also gave notice that it sent the
ERISA, the proposal would also permit working collection to OMB for review. Comments are due
owners of an incorporated or unincorporated trade or 02/05/2018. The notice may be viewed at:
business, including partners in a partnership, to elect https://www.gpo.gov/fdsys/pkg/FR-2018-01-
to act as employers for purposes of participating in an 04/pdf/2017-28444.pdf. Federal Register, Vol. 83,
employer group or association sponsoring a health No. 3, 01/04/2018, 540-541.
plan and also to be treated as employees with respect
to a trade, business or partnership for purposes of

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