At least two states (Massachusetts and New York) are threatening to sue the Trump administration over this new rule…. In several states, group health insurance laws will need to be revised to permit individuals and small groups to participate in AHPs if they are not otherwise members of pre-existing tax-qualified bona fide associations…. Many states do not permit the inclusion of sole proprietors and individuals in group insurance arrangements.

This may shape up as a battle between Federal and State rights, Liberals and Conservatives.  In any event, no state to our knowledge has yet to approve any association health plans.

 

From Crains:  “The state Department of Financial Services said Tuesday that the Trump administration’s final rule expanding the role of association health plans won’t preempt its authority to regulate health insurance. ”  DFS Superintendent Maria Vullo said in a statement. “As always, DFS will enforce New York law and regulation to ensure consumers continue to enjoy the state’s robust health care consumer protections.” State officials and insurance experts have expressed concern that the expansion of association health plans will attract healthier customers seeking cheaper, less comprehensive coverage. That would leave behind a sicker pool of people seeking coverage in the state’s small-business and individual markets, which would lead to insurers’ raising prices for all customers.