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.

You may have read that late Thursday, March 28, 2019, the United States District Court for the District of Columbia ruled that the efforts of the Trump Administration to make health insurance more available and more affordable for small businesses through Association Health Plans do not align with ERISA standards. Along with the Transcend Association attorney, the staff at Blue Cross® Blue Shield® of Michigan and our contacts at the Department of Labor, we are reviewing this ruling and its impact on TranscendAHP. Please click here to view what the Department of Labor’s stance. According to their site: “The Administration will continue to fight for sole proprietors and small businesses so that they can have the freedom to band together to obtain more affordable, quality healthcare coverage.” This means it is business as usual for TranscendAHP and its members.

Transcend is a huge success for Michigan small business owners with hundreds of companies and thousands of their employees enrolled. Transcend has opened up coverage opportunities to sole proprietors and small business owners who did not previously offer health insurance coverage, helping them save thousands of dollars on their health insurance purchase.

Transcend Facts:

  • Transcend is a 501 c 6 non-profit association open to small business owners, including sole proprietors, with fewer than 50 enrolled employees.
  • TranscendAHP began offering coverage January 1, 2019
  • Transcend has been endorsed by over 20 chambers of commerce and trade associations across Michigan for their members.
  • TranscendAHP coverage is offered on a fully-insured basis from Blue Cross Blue Shield of Michigan and Blue Care Network. Enrolled companies have 20 health plan options to choose, all of which were selected from the Blue Cross and Blue Care Network large group menu of products. These plans meet the Essential Health Benefit requirements of the Affordable Care Act and offer deductibles starting at $250.00.
  • The plans are guarantee issue.
  • Nearly 200 sole proprietors have found TranscendAHP to be the right option for themselves and their families.