- The rule expands the definition of “employer” allowing small-business owners, their employees, sole proprietors and other self-employed people to join to buy health insurance plans. The increased bargaining power can lead to lower prices and more cost-effective coverage — this can result in lower premiums for employees.
- The DOL affirmed that “commonality of interest” is still the measurement used to determine eligibility, however that has been expanded to include geography within a state in addition to common business interest (same trade or business)
- An association now can be formed for the sole purpose of offering an association health plan to its members
- As Robert Cresanti, president and CEO of International Franchise Association, noted, “franchise small business owners will be exempt from any possible joint-employer liability that may have come about if they partnered with other franchisees operating under the same brand”.
Benefits Think How the new AHP rule changes will transform small businesses
By
Kevin Dunn
Published Updated
5 Min Read
Kevin Dunn
CEO
Kevin Dunn is CEO of Decisely, a platform that supports benefits, HR resources, and technology for small businesses in the U.S.
