DOL Rules Idaho Farm Bureau Health Plan May Qualify as ERISA Plan

The Department of Labor issued an advisory opinion stating that the group health plan for the Idaho Farm Bureau’s members’ employees qualifies as an employee welfare benefit plan under the Employee Retirement Income Security Act, while also falling under additional regulatory scrutiny as a multi-employer arrangement.

In an advisory opinion dated May 1 and announced on Monday, the DOL’s Employee Benefits Security Administration concluded that the plan, designed to provide group health coverage to employees of the nonprofit farm bureau’s members’ agricultural employers, meets federal standards for plans established by a bona fide association of employers.

According to EBSA, the Idaho Farm Bureau Federation—a longstanding nonprofit that represents more than 10,000 agricultural stakeholders—demonstrates sufficient organizational cohesion and shared economic interest among its members. That commonality is a key requirement for association-based health plans under ERISA, the department argued.

The proposed structure would allow eligible IFBF members, specifically Idaho-based agricultural employers with at least two full-time workers, to join a consortium that sponsors the plan. Participating employers would retain control through a governing benefits committee, which the department used to support the argument that the arrangement functions as a legitimate employer group.

Still, the advisory opinion stopped short of a full endorsement, emphasizing that whether participating employers exercise real-world control over the plan remains a factual question, which EBSA declined to rule on in the opinion letter.

Importantly, EBSA also determined that the plan qualifies as a “multiple employer welfare arrangement,” a designation that subjects it to additional federal and state oversight. MEWAs are typically arrangements that provide benefits to employees of multiple unrelated employers. They have historically drawn regulatory attention due to risks of insolvency and fraud.

The advisory opinion does not carry the force of law, but provides guidance on how federal regulators interpret ERISA in this context. Advisory opinions had become somewhat of a rarity from the DOL, which issued only eight opinions between 2017 and 2024.

Last year, however, the DOL issued four opinions, the most in a given year since 2013. This most recent opinion was the department’s first of 2026.

“This guidance will expand access to quality, affordable health coverage to farmers, ranchers, and agricultural tenants and landowners, across Idaho and may be used by other groups across America,” said Assistant Secretary of Labor for Employee Benefits Security Daniel Aronowitz in a statement. “This is an innovative model that expands access to employer sponsored coverage, especially for small businesses, by reducing regulatory complexity and the cost of health coverage.”