Alert! Alert! Under the President's Executive Order #13813, the U.S. Department of Labor issued a final rule which enables small employers to form Association Health Plans (AHPs).

    New York State has stated through 
Insurance Circular Letter #10, issued on July 27, 2018, that the final rule does not preempt New York Insurance Law. The state will continue to disallow small group or individual associations from forming AHPs.

    It is noteworthy to mention that the new AHPs do not modify any current ERISA guidelines permitting New York to regulate self-funded associations. The Department of Financial Services has made clear their intent to take action against any issuer, broker, or agent that fails to comply. Large group only AHPs are still permitted as long as they meet MEWA and other related requirements.

Posted 3:00 PM

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