The Labor Department's upcoming proposal aims to redefine 'employer' under federal benefits law, which could allow more self-employed individuals and small businesses to access AHPs. This follows a previous attempt in 2018 that was overturned by a federal court.
With health insurance costs rising—9.5% for large employers and 14% for small businesses in 2027—many are seeking alternatives to the Affordable Care Act (ACA) marketplace, where premiums have surged. The National Association of Realtors supports this expansion, arguing that self-employed professionals should have similar health coverage options as traditional employees.
If successful, the proposal could lead to lower premiums for some enrollees, particularly younger, healthier individuals, but it also raises concerns about the potential impact on the ACA marketplace, where a shift to AHPs could leave a less healthy pool of enrollees, driving up costs for those remaining.
The proposal is currently under review by the Office of Information and Regulatory Affairs, and its specifics remain unclear