Rep. Tim Wahlberg, R-Mich., has reintroduced the Association Health Plan (AHP) Acts bill, which now may have a better chance of success. AHPs allow individuals or employers to join together to purchase health care coverage more easily.
Walberg has been a long-time supporter of AHPs and has introduced similar bills since 2018. However, he now serves as the chairman of the House Education and the Workforce Committee, which has jurisdiction over the bill.
Under the bill, an AHP could act as one large employer health plan if it has existed for at least two years, was formed for a purpose other than offering health insurance, and meets all U.S. Labor Department requirements. The bill would also establish rules for AHP premiums. AHPs also could not deny coverage to people with health problems or discriminate against them in other ways.
Many employer groups have supported AHP bills, which allow individuals and small employers a way to access lower premiums and better benefits. Through AHPs, they can access some of the flexibility available only to large employers with self-insured health plans.
However, insurers and some state insurance regulators have been skeptical about AHP proposals. They are concerned that expanding access to AHPs could weaken the fully insured healthcare coverage market. Expanded use of AHPs also could result in regulators having less authority to address problems at AHPs.
The Council for Affordable Health Coverage (CAHC) has praised the bill, claiming that it could help solve current problems in the small-group health insurance market. According to the CAHC, small businesses are overwhelmed with healthcare costs and often cannot offer affordable healthcare coverage to their employees. The hope is that the bill's passage will rein in those costs for small employers and allow them to offer healthcare coverage for more employees. Less than one-third of small businesses now offer employee healthcare coverage.
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