DOL Fights States’ Challenge to Small Business Health Plan Rule (1)

The Labor Department wants a federal judge in Washington to dismiss a lawsuit brought by 11 states and the District of Columbia challenging its recent rule that expands small-business access to association health plans.

The states don’t have authority to pursue their challenge because the rule applies to association health plans and not to states, the DOL said in its motion to dismiss filed Oct. 30 in the U.S. District Court for the District of Columbia.

As to the merits of the states’ claims, the department urged the court to uphold the rule, arguing that its decision to add an ...