A new change in labor laws could result in health care savings for self-employed “working owners” – including Realtors, appraisers and title agents.
Many small businesses and their employees have struggled with government restrictions that limit access to quality, affordable health coverage. The Association Health Plan (AHP) reform will allow small employers a greater ability to join together and gain many of the regulatory advantages large employers offer.
“AHPs are about more choice, more access and more coverage,” U.S. Secretary of Labor Alexander Acosta said in a news release.
Under the new rule, AHPs can serve employers in a city, county, state, a multi-state metropolitan area or a particular industry nationwide. Sole proprietors and their families will be allowed to join such plans, which can be customized to small businesses’ needs.
National Association of Realtors (NAR) officials said they were pleased with the change, which was announced June 19.
“After years of advocating for independent contractors’ right to pursue coverage through association health plans, NAR welcomes today’s Department of Labor ruling,” NAR President Elizabeth Mendenhall said in the release. “America’s self-employed, including real estate professionals, may now have the opportunity to purchase health insurance through a group health plan, taking advantage of economies of scale that may improve access to care while also receiving critical flexibility to choose between their spouse’s plan and an AHP.”
Roughly 40 percent of Realtors have health insurance coverage through a spouse, NAR statistics show.
NAR already has begun working with health insurance experts and providers on the next steps to secure high-quality health insurance for members and their families, according to Bob Goldberg, the association’s CEO.
In October 2017, President Donald J. Trump issued an executive order to promote healthcare choice and competition across the United States, asking the secretary of labor to allow more employers to form AHPs. The new rule does not affect previously existing AHPs. Such plans can continue to operate as before, or elect to follow the new requirements.
The Congressional Budget Office estimates that 400,000 previously uninsured people will gain coverage under AHPs. The same consumer protections and anti-discrimination protections that apply to large businesses will also apply to AHPs organized under this rule.