Potential Settlement Could Open Door to Low-Cost, Less Protected Health Plans

Data Marketing Partnership has been suing the Department of Labor since 2019, arguing that its limited partners should be treated as employees for the purpose of offering self-insured health plans that avoid ACA requirements. Court filings suggest a settlement may be imminent, though details remain unclear. If settled in the company's favor, the decision could accelerate the growth of low-cost, limited-benefit coverage that evades state regulation and essential-benefit mandates.

Experts and state insurance commissioners caution that this could erode consumer protections and push healthier individuals toward these plans, raising premiums for remaining ACA enrollees. Several states have previously fined or barred companies offering similar limited-partnership policies, citing concerns over inadequate coverage and consumer risk.