Association health plans have existed in Nevada for over 25 years. They went away with the advent of the Affordable Care Act.
Under an executive order from President Trump, they were again made available in those states that took the initiative. In September of 2018, the local chamber of commerce’s in NV re-introduced them to the general public and their clients. The plans are very well received as brokers and businesses took advantage of great plans with a price guarantee until January 2021.
ANY District Court in late March took up the legality of these plans as they relate to the affordable care act. The ruling went against the Trump Administration and ruled against parts of the association plans. This led the various chambers and health insurance partners to review the situation. They were also awaiting a ruling from either the DOL (Department of labor) or DOI (Division of Insurance). The Trump Administration is appealing the ruling in Circuit Court.
Recently, the DOL ruled that the association plans could continue until the end of their plan year but could not sell any new plans. The DOI enforced that ruling. Therefore, all association health plans cannot be offered to new clients.
All these rulings made before the Circuit Court can even make a final ruling in this case. The DOL and DOI apparently are against these plans because they feel it will affect the ACA.
This broker thinks these plans are great for the clients, insurance companies and the local chambers of commerce. They offer better coverage than the ACA, better coverage than a small group and can make a difference for clients and their employees.
We cannot make any other comments as this is still being litigated and until the Circuit Court makes their ruling but suffice it to say this is a sad day for consumers.
More to follow as developments happen.
The Barend Agency Inc.
Len Barend, broker