Data Marketing Partnership, LP v. U.S. Department of Labor et al.

Why this Matters:

The plaintiffs ask that a particular partnership arrangement should be classified as a form of an employer group health plan under the Employee Retirement Income Security Act. Such classification would insulate the partnership from state regulation, and bar state and federal agencies from taking enforcement action against the partnership. The classification would also allow the partnership to be exempt from certain consumer protections that apply only to the individual and small group markets, including protections such as guaranteed issue, community rating, or coverage of the essential health benefits package under the Affordable Care Act. This appeal addresses whether the district court erred in finding that the defendants’ action was a final agency action under the APA and in granting the plaintiff’s motion for summary judgement.

Potential Impact:

Allowing such arrangements to avoid major Affordable Care Act protections and state regulation of private health insurance could destabilize health insurance markets through adverse selection and expose more consumers to potential fraud.