08/27/2018
By Tom Dowling and Lisa Rippey
The Department of Labor (DOL) and Internal Revenue Service (IRS) recently released guidance related to the DOL's June 28th final rule on association health plans (AHPs). As background, the AHP rules permit employers to join together as a single group for health insurance purposes through a more flexible commonality of interest test. The additional guidance is meant to help plan sponsors and employers understand the basic rules for managing and operating AHPs. The DOL's Association Health Plans ERISA Compliance Assistance guidance included the following general information:
The IRS has also updated its Questions and Answers on Employer Shared Responsibility Under the Affordable Care Act to clarify that for purposes of employer shared responsibility under the Affordable Care Act, an employer that is not an applicable large employer (ALE) does not become an ALE just because it participates in an AHP. Additionally, the IRS stated that an ALE is still subject to employer shared responsibility regardless of its participation in an AHP.
For more information about the final rule or the new guidance discussed above and how it may affect your business, please contact Jeff Cairns, Tom Dowling, Todd Martin, Lisa Rippey or the Stinson Leonard Street contact with whom you regularly work.