Outcome of Suit Against Department of Labor Could Boost Skimpy Employer Health Plans

The case was brought by a marketing company that wants to define as employees people who download an app and agree to have their internet activity tracked so they can buy into its employee health plan. Such plans are generally exempt from some state and Affordable Care Act rules.

By: Julie Appleby

Outlets: KFF Health News

Published: September 16, 2026

Words: 1,560

Last Updated: 2 days, 7 hours ago

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A long-running lawsuit challenging what it means to be an employee and therefore have access to work-based health plans is being closely watched by health policy analysts. Its outcome could spur the availability of lower-cost but potentially skimpier health coverage that skirts some consumer protections.

Court papers indicate a settlement in the case against the Department of Labor may be in the works, although the parameters of any such deal are unknown.

It would …

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