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EBSARulemakingEBSA-2018-0001

Definition of Employer Under Section 3(5) of ERISA-Association Health Plans

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Consumer Technology Association filings
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Consumer Technology Association filed 1 comment on this docket between Mar 30, 2018 and Mar 30, 2018. 242 other organizations filed here. The comment window closed 3066d ago.

What Consumer Technology Association filed (1)

Mar 30, 2018· Comment 381 Consumer Technology Association 03052018· EBSA-2018-0001-0376

March 5, 2018 ATTN: RIN 1210-AB85 Office of Regulations and Interpretations Employee Benefits Security Administration Room N-5655, U.S. Department of Labor 200 Constitution Avenue NW Washington, DC 20210 The Consumer Technology Association (CTA) appreciates the opportunity to submit comments on the proposed regulation under Title I of the Employee Retirement Income Security Act (ERISA) that would broaden the criteria under ERISA section 3(5) for determining when employers may join together in an employer group or association that is treated as the "employer" sponsor of a single multiple-employer "employee welfare benefit plan" and "group health plan" as those terms are defined in Title I of ERISA. CTA is the trade association representing the $321 billion U.S. consumer technology industry, which supports more than 15 million U.S. jobs. More than 2,200 companies - 80 percent are small businesses and startups with the remaining 20 percent being among the world's best known brands - enjoy the benefits of CTA membership including policy advocacy, market research, technical education, industry promotion, standards development, and the fostering of business and strategic relationships. CTA also owns and produces CES - the world's gathering place for all who thrive on the business of consumer technologies. Profits from CES are reinvested into CTA's industry services. CTA is submitting comments in support of the proposed regulation because we believe that Association Health Plans (AHPs) can provide better benefits at lower costs for more American employees, particularly those who work for small businesses. While CTA agrees with the structure of AHPs to include the ability for these plans to cross state lines, we suggest that further consideration be given to how this will impact non-AHP plans. Care should be taken to examine the potential impact of having a smaller pool in the book of business used in states used to determine premiums. For instance if an AHP pulls a significant population of insured individuals from a certain state and the state is left with a higher ratio of high risk individuals, non-AHP plan premiums could rise significantly as a result. As a member of the American Society of Association Executives (ASAE), CTA has thoroughly reviewed ASAE's comments submitted on February 8, 2018. CTA supports ASAE's comments and recommendations. CTA thanks the Department of Labor for this opportunity to comment on the ERISA and appreciates the department's time and consideration of the crucial issue of developing new methods to provide all US employees access to affordable health care. We would be happy to discuss our comments with you, and we look forward to working with you.

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Abstract

This document contains a proposed regulation under Title I of the Employee Retirement Income Security Act (ERISA) that would broaden the criteria under ERISA section 3(5) for determining when employers may join together in an employer group or association that is treated as the "employer" sponsor of a single multiple-employer "employee welfare benefit plan" and "group health plan" as those terms are defined in Title I of ERISA. By treating the association itself as the employer sponsor of a single plan, the regulation would facilitate the adoption and administration of such arrangements. The regulation would modify the definition of “employer,” in part, by creating a more flexible “commonality of interest” test for the employer members than the Department of Labor (DOL or Department) had adopted in sub- regulatory interpretive rulings under ERISA section 3(5). At the same time, the regulation would continue to distinguish employment-based plans, the focal point of Title I of ERISA, from mere commercial insurance programs and administrative service arrangements marketed to employers. For purposes of Title I of ERISA, the proposal would also permit working owners of an incorporated or unincorporated trade or business, including partners in a partnership, to elect to act as employers for purposes of participating in an employer group or association sponsoring a health plan and also to be treated as employees with respect to a trade, business or partnership for purposes of being covered by the employer group's or association’s health plan. The goal of the rulemaking is to expand access to affordable health coverage, especially among small employers and self-employed individuals, by removing undue restrictions on the establishment and maintenance of association health plans under ERISA. The proposed regulation would affect such association health plans, health coverage under these health plans, groups and associations of employers sponsoring such plans, participants and beneficiaries with health coverage under these plans, health insurance issuers, and purchasers of health insurance not purchased through association health plans.

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Co-filers (242)

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