U.S. Senator Mike Enzi, R-Wyo., applauded the Department of Labor (DOL) for releasing a final rule that will allow small businesses to join together to create Small Business Health Plans.

Enzi has championed the idea of allowing Small Business Health Plans, also known as Association Health Plans, for many years. He has previously introduced legislation similar to the DOL’s rule in the Senate and also held a hearing on this proposed rule earlier this year to discuss how the change could help small businesses lower the costs of providing insurance to their employees.

“I have been a big supporter of allowing small businesses to pool together to provide health insurance for their employees,” Enzi said. “The Department of Labor’s new rule will hopefully provide that negotiating power that small businesses could never have on their own, which in turn benefits their workers. Small businesses make up about 95 percent of all employers and it is important that we find ways to help lower the high cost of health care. This change is a big win for small businesses and employees alike.”

The department drafted the rule in response to an executive order from President Trump to create more affordable health care choices through increased flexibility and competition. The Congressional Budget Office (CBO) estimates that millions of people will switch their coverage to more affordable and more flexible AHP plans and save thousands of dollars in premiums. CBO also estimates that 400,000 previously uninsured people will gain coverage under AHPs.