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CA Department of Insurance

Insurance Commissioner Jones issues statement on federal Association Health Plan rule

News: 2018 Press Release

For Release: June 19, 2018
Media Calls Only: 916-492-3566
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Insurance Commissioner Jones issues statement on federal Association Health Plan rule
Rule allows plans with history of insolvency issues
SACRAMENTO, Calif. — "Today, the Trump Administration issued its final rule regarding Association Health Plans, described in the rule as a type of Multiple Employer Welfare Arrangement (MEWA), promoting these plans as a path for groups of businesses or organizations to obtain health insurance coverage. Some MEWAS have had a troubling history in California, including cases of MEWA fiscal insolvency, inability to pay consumer claims, and allegations of fraud, so California law prohibits the formation of any new MEWAS. The final rule recognizes continued state regulation of MEWAS; however, outside California, the Trump Administration's final rule threatens the continued existence of comprehensive health insurance coverage, as those who are sick may no longer be provided coverage that meets their health care needs or may obtain coverage through an arrangement that may later fail when needed most."

Dave Jones Insurance Commissioner     

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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