Federal Judge Blocks Trump’s Association Health Plan Rule

Federal Judge, John Bates, submitted a 43-page ruling that blocks the Trump administration’s efforts to further oversee association health plans (AHPs). The Final Rule from the administration would allow employers to form associations to create these health plans that do not abide by the Affordable Care Act (ACA) market rules.

Judge Bates stated, “The Final Rule is clearly an end-run around the ACA. Indeed, as the President directed, and the Secretary of Labor confirmed, the Final Rule was designed to expand access to AHPs in order to avoid the most stringent requirements of the ACA.”

The judge goes on to state that the administration’s rule would reach beyond its authority under the Employee Retirement Income Security Act (ERISA), as well as disregard statutes under the ACA.

“In short, the Final Rule exceeds the statutory authority delegated by Congress in ERISA,” Judge Bates wrote. “The Final Rule’s provisions defining ‘employer’ to include associations of disparate employers and expanding membership in these associations to include working owners without employees are unlawful and must be set aside.”

It is expected that the administration will ask for an appeal of the ruling.

“We disagree with the district court’s ruling and are considering all available options,” Justice Department spokeswoman, Kelly Laco said in a statement. “The administration will continue to fight for sole proprietors and small businesses so that they can have the freedom to band together to obtain more affordable, quality health-care coverage. The Association Health Plan rule opened health care options for dozens of associations representing thousands of small businesses and sole proprietors and provided them with access to the same type of affordable health care options offered by other employers.”

This ruling marks the second recent defeat for the Trump administration’s efforts to dismantle the ACA and create new health plan opportunities. A judge recently stopped the administration’s plans for Medicaid recipients in Kentucky and Arkansas to be subject to work requirements in exchange for health benefits.—Edan Stanley