ATLANTA, GA – In May, our office led a coalition of 14 states in support of the Department of Labor’s Notice of Proposed Rulemaking which aimed to allow more small businesses to become eligible to participate in Association Health Plans (AHPs). Today, the Department finalized that rule, providing more affordable, quality health coverage options to hardworking citizens in our states.

“In wake of the Affordable Care Act, small business owners have faced diminishing options when trying to provide quality care to employees as the unconstitutional legislation subjected them to more costly rules than larger businesses,” said Attorney General Chris Carr. “We must continue to support our small business community, the backbone of our economy, and we are proud of the role that our coalition played in advocating for more innovative healthcare options.”

Currently, federal regulations require that members of AHPs be in the same industry and that they be involved in the day-to-day decision-making of a business, and only about one-half of small businesses offer employer-sponsored health insurance. Now, for example, employers have the opportunity to form AHPs by city, county, state or multi-state metropolitan areas – i.e. employers who are members of their local chamber of commerce. Due to these reforms, within just a few years, the Congressional Budget Office is reporting that some four million additional Americans will enroll in, and benefit from, AHPs.

Consumer protections will continue to apply to large businesses and AHPs alike. To curb potential fraud, AHPs will be required to file annual reports with the Department of Labor, including data about finances, compliance and consumer protections, and the Department has also pledged to work with state officials to prevent and prosecute fraud.

In partnership with South Carolina Attorney General Alan Wilson, our office led the coalition with the support of the following states: Alabama, Arkansas, Colorado, Florida, Indiana, Kansas, Louisiana, Missouri, Nevada, Oklahoma, South Dakota and Wisconsin.

A copy of the original letter and an opinion editorial from Department of Labor Secretary Alexander Acosta are attached.

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