On December 17, 2018, the Office of the Insurance Commissioner (OIC) filed emergency rules establishing rate and form filing requirements for a new form of association health plans authorized in rules adopted by the United States Department of Labor (DOL) on June 21, 2018. On March 28, 2019, the United States District Court for the District of Columbia filed its decision in State of New York v. U.S. Department of Labor. The Court vacated several provisions of the federal rule and remanded the final rule to the Department of Labor for consideration of the effect of its decision on the remaining provisions of the rule.
Under the state Administrative Procedure Act, OIC’s emergency rule will expire on April 16, 2019. Given that the federal district court vacated several provisions of the rule that were the basis for the OIC emergency rule, OIC will allow the current emergency rule to expire. We are monitoring the status of State of New York v. U.S. Department of Labor. If future decisions or orders from the court appear to affect the validity and enforceability of the DOL rule, we will review those actions to determine if further rulemaking related to a new form of association health plans is necessary. Until the federal law is clarified and new state rules are adopted, the OIC cannot approve any health plans offered as the new form of association health plan described in the invalidated portions of the federal rule.