DOL Releases Second Guidance on Recent AHP Litigation

By Compliance Dashboard

on May 21, 2019

Share:

In response to the recent litigation surrounding association health plans (“AHPs”), the Department of Labor (“DOL”) released its second guidance on May 13, 2019, regarding the United States District Court for the District of Columbia’s decision vacating key portions of the DOL’s AHP Final Rule (“AHP Final Rule” or “Final Rule”) published on June 21, 2018. Our previous blog recaps the AHP Final Rule, recent litigation, and the DOL’s previous guidance.

In its second guidance, the DOL answers questions regarding the effect of the district court’s decision on AHPs:

AHPs formed in good faith reliance on the Final Rule’s validity prior to the court’s decision are relieved from enforcement of violations, which is addressed in the DOL’s previous guidance; however, this relief does not extend to actions taken after the court’s decision (i.e., marketing to, and signing up, new employer members to the AHP).
The DOL’s enforcement relief extends through the plan year or the contract term that was in force prior to the court’s decision.
AHPs formed pursuant to the DOL’s sub-regulatory guidance (prior to the AHP Final Rule) are unaffected by the court’s decision and may seek additional information on the DOL’s Employee Benefits Security Administration’s website.

The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice.

More From the Blog

View all

A Timeline of the AHP Final Rule and Recent Litigation

On June 21, 2018, the Department of Labor (“DOL”) published an Association Health Plan Final Rule (“AHP Final Rule” or “Final Rule”) expanding the definition of “employer” under ERISA Section 3(5) for purposes of determining…

House Passes the SECURE Act Which Moves to Senate, Would Affect 401(k) Plans in Big Ways

On Thursday, May 23, 2019, the U.S. House of Representatives passed, by a huge 417 to 3 margin, the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”). Although the current climate in…

$3 million settlement, HIPAA breach affects 300,000 individuals’ PHI

On May 6, 2019, the U.S. Department of Health and Human Services (“HHS”) announced a $3 million settlement with Touchstone Medical Imaging (“Touchstone”) for potential violations under the Health Insurance Portability and Accountability Act (“HIPAA”)…

Products

Products by Name

Solutions by Role

Solutions by Need

Solutions by Industry

About

Resources

Terms of Use Privacy Policy

2025 State of Workplace Empathy Report

Schedule a 20-minute demo