Impact of Federal District Court Ruling in State of New York v. United States Department of Labor on Vermont Association Health Plans

23 April 2019

The purpose of this bulletin is to provide guidance for association health plans (AHPs) and multiple employer welfare arrangements (MEWAs) operating in Vermont under Rule I-2018-01 on the regulatory impact of the U.S. District Court for the District of Columbia’s decision in State of New York v. United States Department of Labor, issued on March 28, 2019. In that decision, the court found that the U.S. Department of Labor’s (DOL) AHP rule, which modified the definition of “employer” to allow more employer groups and associations to form AHPs, exceeded its rulemaking authority under the Employee Retirement Income Security Act of 1974. The court vacated the rule and remanded it to the DOL for reconsideration.

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