A proposed rule from the U.S. Department of Labor could make it easier for small businesses and self-employed individuals to purchase health insurance through association health plans, or AHPs, according to the National Association of Realtors^®.

In a comment letter submitted yesterday, NAR expressed mostly strong support for the proposed regulation, which modifies and broadens the definition of "employer" to include "working owners," opens the door to potentially allowing trade associations, including NAR, to offer health insurance coverage to members through the large group insurance market. The large group insurance market typically offers greater flexibility in insurance plan design and lower policy costs through improved negotiating power.

While most Americans get their health coverage through an employer, most real estate agents, and nearly nine in 10 Realtors^®, are independent contractors, not employees, of their real estate brokerage. As an independent contractor, many typically don't have access to traditional employer-provided benefits, such as 401K plans and health insurance, since these types of benefits could jeopardize their independent contractor status. As a result, self-employed professionals are forced to purchase insurance in the individual insurance market, which tends to offer fewer choices at higher costs.

In the letter to regulators, NAR recommended changes to the proposed eligibility requirements to maximize participation among self-employed real estate professionals. NAR encouraged the Department of Labor to reconsider a provision preventing working owners from participating in an employer health plan if subsidized coverage is available to them through a spouse's employer since that may not always be the most affordable option for a family.

"Eliminating this requirement will provide greater insurance choices to more real estate professionals, many of whom are struggling to find affordable insurance," said Mendenhall. "We urge the administration and the Department of Labor to move forward with our recommendations in mind, and while challenges likely remain ahead that could delay its completion, we have strong hope that a final rule will be issued sometime in the near future and real estate professionals will have improved access to affordable health insurance."