The National Association of REALTORS® recently met separately with officials from the White House, U.S. Department of Labor (DOL), and U.S. Department of Health and Human Services (HHS) to advocate for health coverage options for independent contractors and other self-employed individuals, including real estate professionals.
The meetings came as DOL develops a proposed rule that could determine whether self-employed individuals with no employees may participate in Association Health Plans (AHPs). On August 11, DOL formally submitted the proposal to the Office of Management and Budget for interagency review, the final step before publication of a proposed rule in the Federal Register.
The proposal revisits the federal definition of “employer” under the Employee Retirement Income Security Act (ERISA) and could create a pathway for trade associations to offer health coverage options to self-employed professionals as well as small employers through AHPs.
Current federal law under ERISA does not clearly allow self-employed individuals without employees to participate in employer-sponsored group health plans such as AHPs. Because most real estate professionals are independent contractors, they generally do not have access to group health coverage unless it is available through a spouse’s plan. (Others have access to coverage through a government program such as Medicare or Medicaid.)
As a result, many self-employed professionals must purchase coverage through the Affordable Care Act (ACA) marketplace or go without insurance. NAR supports the ACA and its protections for individuals with pre-existing conditions but has long advocated for additional health coverage options for the self-employed. NAR is urging DOL to clarify that self-employed individuals may participate in AHPs under appropriate, modern-day circumstances.
“The workforce has changed dramatically since ERISA was enacted in 1974,” says Austin Perez, a senior policy advisor at NAR. “Today, millions of Americans work as independent contractors as sole proprietors or in other nontraditional arrangements. We’re simply asking for real estate professionals and other self-employed individuals to have access to the same types of health coverage options available to employees and union members.”
At this week’s meetings, Perez was joined by Angela Shields, CEO of Tennessee REALTORS®; Tiffany Banks, CEO of Nevada REALTORS®; and Rick Lugg, CEO of Virginia REALTORS®, who shared their states’ experiences offering and pursuing AHPs under previous federal policies.
Earlier Progress on AHPs Halted
In 2018, DOL issued a rule that allowed self-employed individuals and small employers to join AHPs. REALTOR® associations in several states successfully launched AHPs as a result. Each of these plans covered pre-existing conditions, provided comprehensive benefits, reduced deductibles and expanded provider networks.
Nevada REALTORS® was one of the associations that offered a plan.
“Most real estate professionals are independent contractors and small businesses of one who often lack access to the same health coverage options available to traditional employees,” Banks says. “REALTOR® AHPs offered comprehensive coverage that protected people with pre-existing conditions while reducing costs for many members. These were comprehensive, high-quality health plans that gave self-employed professionals another option.”
Unfortunately, a federal court overturned the AHP rule that enabled those plans, forcing the associations to unwind their plan, leaving many members without health coverage again.
“When REALTORS® were previously allowed to participate in AHPs, we demonstrated that it was possible to offer comprehensive coverage, meaningful consumer protections, and lower costs,” says Shields, the first REALTOR® association executive to bring an AHP option to her state before the rule was overturned. “We support efforts to develop a rule that can withstand legal challenges, but the rule also has to work in practice. If the requirements become so restrictive that associations and insurers cannot realistically offer coverage, then the option exists only on paper.”
NAR is asking federal agencies to coordinate closely with one another when developing any future AHP framework. Virginia REALTORS® worked with the Virginia General Assembly to enact bipartisan legislation intended to expand health coverage options for self-employed professionals, but subsequent federal agency interpretations created obstacles that prevented the Virginia REALTORS® plan from moving forward.
“A workable rule needs to be durable as well as legally defensible,” Lugg says. “Associations, insurers and real estate professionals need confidence that they can invest time and resources into building a plan without facing conflicting federal interpretations later. DOL and HHS should work together to ensure self-employed professionals have access to coverage options that are both practical and durable.”
NAR told Trump administration officials that any proposed rule must strike the right balance. While additional safeguards may be necessary to help the rule withstand future legal challenges, those safeguards should not be so restrictive that associations and insurers cannot realistically offer coverage.
Key: AHP Options Should Exist Alongside ACA
Health insurance remains a significant concern for many NAR members. NAR’s 2026 Health Insurance Survey found that 62% of respondents saw their monthly premiums increase over the previous year, while affordable premiums and reasonable deductibles and copays ranked as the top priorities.
“The Affordable Care Act works well for many REALTORS®, and we support protections for people with pre-existing conditions,” Perez says. “But the survey data also show that affordability remains a challenge for many members. The goal is not to replace existing coverage options. The goal is to create another viable option for self-employed professionals who need one.”
This week’s meetings gave NAR and the state associations an opportunity to reiterate support for affordable, high-quality coverage options through AHPs alongside existing ACA coverage and protections for individuals with pre-existing conditions. The association stressed that AHPs should complement existing coverage options, not replace them.
DOL's proposed rule is expected to be published later this year following completion of the federal interagency review process. NAR will be submitting public comments when the rule is proposed later this year.
