California Department of Insurance Issues Statement on Association Health Plans

SACRAMENTO, California, June 19 -- The California Department of Insurance issued the following statement by Insurance Commissioner Dave Jones:

"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