“The DOL acknowledged that AHPs will be MEWAs and that states will retain their existing authority related to MEWA regulation and enforcement….
Since many states, including California, have substantially limited the establishment of MEWAs — particularly self-insured MEWAs — in order to avoid abuse, it is unclear whether the expanded availability on AHPs under the new regulations will even be feasible in some states…. Another hurdle for AHPs will be state mandates and definitions for small and large group insurance … The regulations also result in differing treatment of AHPs under various federal laws.”
Association Health Plan Regs Face Challenges (PDF)
Boutwell Fay LLP