Indiana Withdraws Association Health Plans Bulletin 245

IN Insurance Bulletins

Published October 15th, 2024

Detected March 19th, 2026

Summary

The Indiana Department of Insurance has withdrawn Association Health Plans Bulletin 245. This action follows the U.S. Department of Labor's rescission of its 2018 rule defining 'employer' for Association Health Plans, returning to pre-2018 guidance.

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What changed

The Indiana Department of Insurance (IDOI) has issued Bulletin 276 to announce the withdrawal of its previous Bulletin 245 concerning Association Health Plans (AHPs). This withdrawal is a direct response to the U.S. Department of Labor's (DOL) final rule, effective July 1, 2024, which rescinded the 2018 AHP Rule. The 2018 AHP Rule had expanded the definition of 'employer' and relaxed criteria for AHPs, but was largely invalidated by a court decision and subsequently rescinded by the DOL.

This action means that Indiana is reverting to its prior regulatory stance on AHPs, aligning with the DOL's return to pre-2018 guidance on determining 'employer' status for sponsoring group health plans under ERISA. Regulated entities, including existing AHPs, MEWAs, small business owners, sole proprietors, insurance producers, third-party administrators, and consumers, should be aware that Bulletin 245 is no longer in effect. No specific compliance actions are mandated by this bulletin, as it merely withdraws a prior notice. Questions should be directed to the provided compliance email.

What to do next

Review prior Bulletin 245 and understand its withdrawal.

Source document (simplified)

Indiana Department ofInsurance October 15, 2024 Bulletin 276 WITHDRAW AL OF ASSOCIATION HEALTH PLANS BULLETIN 245 This bulletin is directed to all existing association health plans ("AHPs") as defined by IC § 27-8-5-16, existing multiple employer welfare arrangements as defined by IC§ 27-1-34-1, small business owners, sole proprietors, insurance producers, third-party administrators as defined by IC§ 27-1-25-1, and consumers. The purpose ofthis bulletin is to announce the Department's position regarding the regulation of AHPs. On June 19, 2018, the U.S. Department of Labor ("DOL") issued the "Definition of 'Employer' under Section 3(5) of Employer Retirement Income Security Act ("ERISA")-Association Health Plans" final rule ("2018 AHP Rule"). Fed. Reg. 28912. The 2018 AHP Rule redefined "employer" to include sole proprietors and to allow them to function as small group employers. The 2018 AHP Rule also made the criteria for the creation ofAHPs more lenient. On March 28, 2019, the U.S. District Court for the District of Columbia issued a decision invalidating the 2018 AHP Rule's expanded definition of"employer", as well as the more lenient criteria for creating AHPs. New Yorkv. US. Dep't ofLabor, 363 F.Supp. 3d 109 (D.D.C. 2019). The court concluded DOL exceeded its statutory authority by interpreting ERISA in an unreasonably expansive manner in contradiction with ERISA's central purpose, which is the regulation of employment-based relationships. DOL initially appealed the court's decision but later requested a stay in 2021 to engage in formal rulemaking. On December 20, 2023, DOL published a notice ofproposed rulemaking to rescind the 2018 AHP Rule. Following a formal notice and comment period, DOL published a final rule on April 30, 2024, finalizing its proposal to rescind the 2018 AHP Rule. Effective July 1, 2024, the 2018 AHP Rule is rescinded in its entirety. Fed. Reg. 34106. To determine whether a group or association qualifies as an "employer" for the purpose ofsponsoring a group health plan under ERISA, DOL is returning to its pre-2018 AHP Rule guidance. In response to DO L's rescission ofthe 2018 AHP Rule, the Department withdraws Bulletin 245, titled "Association Health Plans," to maintain compliance with the relevant federal requirements. Questions regarding this bulletin should be directed to compliance@idoi.in.gov. INDIANA DEPARTMENT OF INSURANCE