As many as 12 percent of Illinois REALTORS® responding to a survey earlier this year said they don’t have health insurance, underscoring the importance of a U.S. Department of Labor rules change Tuesday which would allow associations to extend healthcare coverage to members.

The decision would allow those falling in the Labor Department’s “working owner” category to get health insurance through an association. That could mean REALTORS®, many of whom are independent contractors, could have more coverage options from which to choose.

Surveys conducted by Illinois REALTORS® show that the number of those stating they did not have health coverage rose from 9 percent in 2017 to the 12 percent reported this year.

The state association joined with NAR in calling for the rules change.

“These self-employed professionals are forced to purchase health insurance in the more volatile individual insurance market, which tends to offer fewer choices at drastically higher costs,” wrote Illinois REALTORS® President Matt Difanis in a letter of support for the policy change.

A third of respondents in the 2018 survey of more than 1,800 members said they were covered by a spouse’s insurance plan and 37 percent purchased coverage through a marketplace. Thirteen percent of respondents had coverage through another employer, and just four percent said they had coverage through their real estate firm.

Under the federal rule change:

• The plans cannot charge consumers more money or deny coverage because of pre-existing conditions.
• And the plans do not have to offer specialized coverage for maternity or mental health insurance.

According to an article in the Chicago Tribune:

The Congressional Budget Office has estimated that an additional 4 million people will enroll in association health plans by 2023, including 400,000 people who would otherwise be uninsured.

When could plans be available?

NAR states that there could be legal and regulatory challenges before the decision is finalized, so plan offerings are not imminent. And, the national association cautions that the plans that do emerge might not be right for all of those seeking coverage.

Regardless, the change is an important step forward.

“America’s self-employed, including real estate professionals, may now have the opportunity to purchase health insurance through a group health plan, taking advantage of economies of scale that may improve access to care while also receiving critical flexibility to choose between their spouse’s plan and an AHP (association health plan),” said NAR President Elizabeth Mendenhall.