ASSOCIATION HEALTH PLANS
BY: JENNIFER STEIN,
BOWEN MICLETTE & BRITT
Nothing In The Headlines:
Two Issues Under The Radar
W
hile stories about the
Affordable Care Act
(ACA)—President
Obama’s health care
reform law—have
not been as prevalent in the news lately,
behind the scenes, there are still several
issues percolating. Two issues that are
key to watch include President Trump’s
introduction of Association Health
Plans and the potential that Congress
or even the IRS will render the employer
mandate obsolete.
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ASSOCIATION HEALTH PLANS
Association Health Plans (AHPs) were
introduced by President Trump in an
Executive Order last October. AHPs
are expected to be a vehicle for groups
of small employers and perhaps even
individuals who are self-employed to
band together to form an organization
for the purpose of purchasing health
insurance. This would permit the
businesses within this group to buy
health insurance at a rate that is
competitive with larger employers.
There are supporters and detractors
within the industry. Those opposed
to the AHPs, predominately providers,
are concerned about problems of
nonpayment or underpayment due
to an association’s risk for insolvency.
They point to a history of problems
with Multiple Employer Welfare
Arrangements (MEWAs), a somewhat
similar structure, which resulted in
states’ departments of insurance being
given firmer control over MEWAs to
reduce the insolvency risk.