Coalition to Protect and Promote AHPs Files Brief To Uphold the DOL’s Final AHP Rule
WASHINGTON – On June 7th, The Coalition to Protect and Promote Association Health Plans (AHPs) filed an amicus brief with the Court of Appeals for the District of Columbia Circuit supporting the Department of Labor’s (DOL’s) final AHP rule.
Our Coalition continues to question how and why the attorneys general of 11 states and the District of Columbia (DC) are suing to invalidate the final AHP rule. For example, as we explained to the Circuit Court, the 11 states and DC already have existing laws that prohibit certain types of AHPs from forming in their State/jurisdiction. And, these States and DC currently have broad authority to supplement their existing laws to prohibit AHPs formed in accordance with the final AHP rule. Yet, instead of acting on their own authority, the 11 states and DC are seeking to strike down the final rule to the detriment of roughly 30,000 current AHP participants.
Importantly, these AHP participants live outside of the 11 states and DC. Just as important is the fact that at least 28 states have taken action to conform to the final AHP rule in some way, including issuing guidance, enacting legislation, or simply approving AHP formation. In essence, despite each state’s authority to independently regulate their own insurance markets, the 11 states and DC are effectively dictating what types of health coverage 28 other states should and should not make available to their citizens.
Our Coalition also took the opportunity to highlight information that we believe the DC District Court did not consider. For example, the Congressional Budget Office (CBO) released a report on January 31, 2019, concluding that – after factoring in the availability of the Affordable Care Act’s (ACA’s) premium tax credits and behavioral changes among individuals and employers – AHPs will not “spur a noticeable decline in insurance coverage.” CBO also estimated that “400,000 people will have new AHP coverage who otherwise would be uninsured over the 2019 - 2028 period.” That is an insurance coverage gain.
In addition, all of the AHPs formed in accordance with the final AHP rule by members of our Coalition voluntarily cover all or virtually all of the ACA’s “essential health benefits” (EHBs). For example, all of these AHPs cover all 10 EHBs, including pediatric services, although many of them do not cover pediatric dental or vision, which is a component of the 10th EHB. It is important to note that coverage for pediatric dental and/or vision through a stand-alone plan is typically more comprehensive and cost-effective than covering these services through a major-medical insurance policy.
Our Coalition is currently comprised of 25 like-minded organizations that believe employees of small employers and independent contractors deserve quality and affordable health coverage with strong consumer protections. Member organizations include: American Bankers Association; American Composites Manufacturers Association; American Farm Bureau Federation; American Society of Association Executives; American Society of Travel Advisors; American Veterinary Medical Association; Associated Employers Benefit & Trust; Association of Web-Based Health Insurance Brokers; Financial Services Institute; Food Marketing Institute; Foundation for Government Accountability; Global Cold Chain Alliance; Indiana Credit Union League; International Franchise Association; International Sign Association; Manufacturer & Business Association; Michigan Business and Professional Association; Michigan Dental Association; National Apartment Association; National Association of Mortgage Brokers; National Association of REALTORS®; NFIB; National Marine Manufacturers Association; Small Business Association of Michigan; Transportation Intermediaries Association.
MEDIA CONTACT: Chris Vest, ASAE, 202.626.2798, cvest@asaecenter.org
