June 19, 2018
The U.S. Department of Labor issued a new rule today that will be a great benefit to entrepreneurs and self-employed business owners. The new rule deals with Association Health Plans. What is an Association Health Plan, and why does this new rule help out entrepreneurs and self-employed business owners? Association Health Plans (AHPs) are group health plans that employer groups and associations offer to provide health coverage for employees. AHPs allow small employers to band together to purchase the types of coverage that are available to large employers, which can be less expensive and better tailored to the needs of their employees. The new Department of Labor rule allows for the first time working owners without other employees (including sole-proprietors) and their families to join AHPs. Prior to today’s issuance of the new Department of Labor rule, self-employed individuals who employ other individuals have been able to join an AHP. Under the new rule, self-employed individuals with no other employees can also join an AHP, along with their families.