FOR IMMEDIATE RELEASE

Contact:
Jenna Weisbord, 310-995-0839
jweisbord@franchise.org
@franchising411

IFA Supports Association Health Plans with Joint-Employer Protection

WASHINGTON, March 6—International Franchise Association today filed comments in support of the Department of Labor’s Purposed Rule expanding the definition of “employer” under Section 3(5) of ERISA to allow for increased access to Association Health Plans (AHP). Under the new rule, small business owners will be able to join together to buy health insurance. 

“IFA welcomes the opportunity to give America’s franchise job creators and their employees access to high quality health coverage, creating greater flexibility and cost containment,” said IFA’s SVP Government Relations & Public Affairs Matt Haller. “The franchise model is the best example of how economies of scale can be utilized to make the delivery of products and services more affordable for small business owners, and their customers.  If businesses engaged in franchising can form AHPs, they are poised to improve access to coverage at an accelerated rate.”

In comments submitted, IFA asked the department for a “safe harbor” from any new joint-employer liability as a result of participating in a plan. This request has been echoed by bipartisan members of Congress including Reps. Bradley Byrne (R-Ala.), Henry Cuellar (D-Texas), Tim Walberg (R-Mich.) and Sam Johnson (R-TX).

The proposed rule would change the definition of “employer” to make it easier for individuals and employers in the same industry or geography to band together in an association and form their own health plan. IFA is requesting the interpretation of the commonality of interest requirement to include the franchise business model, as franchises operate across 300 different business formats.

“Franchise businesses are hiring and expanding at a rapid pace, so it is imperative that they have the ability to provide their employees with quality and affordable health insurance. We look forward to working with the Department of Labor and the Administration to implement this important new policy,” stated Haller.

To view IFA’s comments, please click here.

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About the International Franchise Association
Celebrating 56 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.

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