Over the past month, there was a court ruling as well as a new Department of Labor (DOL) statement regarding association health plans (AHP). TranscendAHP is in full compliance with the Department of Labor (DOL) regulations, however on March 28, 2019, a federal court ruling stated that AHPs are not in compliance with ERISA standards. The latest DOL Advisory Statement details were then released on April 29, 2019. From this Statement, it is clear that groups currently enrolled in TranscendAHP plan will continue to have coverage through the year (December 31, 2019). The appeal is being expedited with a possible conclusion as soon as September.
During the remainder of the plan year, you and your members will not experience interruption in coverage.
Transcend is working closely with Blue Cross® Blue Shield® of Michigan to determine a recommended strategy prior to your January renewal. As more information becomes available from either the DOL or around the renewal strategy, you will receive additional communications.
You are highly encouraged to share this information with your employees who are enrolled in TranscendAHP. If you have additional questions you are encouraged to contact your health insurance agent.