The U.S. Labor Department has submitted a draft rule proposal to the White House that would expand worker access to health insurance through membership organizations by modifying the definition of “employer” under federal benefits law. The proposal aims to make association health plans, or AHPs, available to a broader population, potentially including self-employed workers and members of various trade associations.
This marks the second attempt by the Labor Department under the Trump administration to expand AHP eligibility. An earlier 2018 proposal was partially struck down by a federal court, which ruled that the Labor Department had overextended the meaning of “employer” under the Employee Retirement Income Security Act. The Biden administration subsequently rescinded that rule in 2024. Policy experts note uncertainty about how the new proposal will address the previous court concerns while attempting to achieve similar goals.
Support for expanded AHPs comes from organizations representing self-employed professionals. The National Association of Realtors, with over 1.4 million members, has advocated for such expansion, noting that self-employed real estate professionals should have comparable coverage options to employees and union members. Currently, AHPs are generally limited to associations whose members work in the same industry and have employees. Many trade associations include sole proprietors and members across various industries who do not qualify under existing rules.
The timing of the proposal coincides with rising health insurance costs across the industry. Large employers face projected premium increases of 9.5% next year, while small businesses face increases around 14%. ACA marketplace premiums have surged following the expiration of enhanced subsidies at the end of 2025, with average premium payments rising 58% this year. Experts suggest that AHP expansion could potentially offer lower premiums than individual marketplace coverage, though specific details remain unavailable pending public release of the proposal.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI