United Benefit Advisors Insight and Analysis Blog

DOL and IRS Release Additional Information on Association Health Plans

By Karen Hsu, Director of Compliance at United Benefit Advisors
  Sep 20, 2018 1:04:47 PM

shutterstock_1032672913On August 20, 2018, the Department of Labor (DOL) posted the Association Health Plans ERISA Compliance Assistance fact sheet.

On August 20, 2018, the IRS added a new Q&A 18 to its Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act. Q&A 18 confirms that:

  • An employer that is not an applicable large employer (ALE) under the employer shared responsibility provisions does not become an ALE due to participation in an AHP.
  • An employer that is an ALE under the employer shared responsibility provisions continues to be an ALE subject to the employer shared responsibility provisions regardless of its participation in an AHP.
  • The only circumstance when multiple employers are treated as a single employer for determining whether the employer is an ALE is if the employers have a certain level of common or related ownership.

For more information about Association Health Plans, contact your local UBA Partner Firm.

Topics: Department of Labor, association health plans, Internal Revenue Service