DOL Proposed Rule Would Loosen ‘Commonality’ Test for Offering AHPs

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A rule recently proposed by the U.S. Department of Labor (DOL) would give employers with a “commonality of interest” the chance to offer health coverage jointly through association health plans (AHPs).

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The proposal, published January 5 (83 Fed. Reg. 614), would broaden the definition of “employer” under the Employee Retirement Income Security Act (ERISA) to include an association of employers linked by industry or geography that is formed to sponsor a group health plan for its employer members.

“Many small employers struggle to offer insurance because it is currently too expensive and cumbersome,”

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