On October 12, 2017, an Executive order allowing allowing Association Health Plans (AHPs) paved the way for the U.S. Department of Labor to increase access to group health insurance for small businesses. The aim of AHPs is to authorize small-scale industries to band together through chambers of commerce or other trade associations so they can obtain a large group pricing.
The aim of AHPs is to allow small businesses to band together through chambers of commerce or other trade associations in order to obtain large group pricing.
The Trump Administration's Executive Order Promoting Healthcare Choice and Competition across the United States laid out these new options for small business group health insurance.
"President Trump is expanding affordable health coverage options for America’s small businesses and their employees. Many of our laws make healthcare coverage more expensive for small businesses than large companies. Association Health Plans are about more choice, more access, and more coverage."
- Secretary of Labor Alexander Acosta
How Do AHPs Work?
Under the U.S. Department of Labor regulation, Association Health Plans (AHPs) are group health insurance policies that allow employers with less than fifty employees to join forces in giving away employee benefits to their workforce. AHPs are basically to give permission for small employers to obtain large group pricing and underwriting advantages.
According to the new Executive Order, chambers of commerce and other trade associations are allowed to form AHPs based on common purpose, industry or geography. Also, for the very first time, sole-proprietors who do not have any other employees, are allowed to join AHPs along with their families. This will undoubtedly create a new option for many self-employed individuals to have access to quality, affordable group health insurance coverage and may encourage others to become entrepreneurs as well.
Can AHPs Increase Premiums According to the Person's Health Condition?
No. If employers or their employees are eligible to join, they aren’t excluded from Association Health Plans. They aren’t charged too for different premium amounts on their health status. Under the new rules & regulations, small businesses will enjoy the same consumer protections and anti-discrimination provisions of the Affordable Care Act.
Elevate Insurance currently has offices in Las Vegas, Nevada and Idaho Falls, Idaho. We proudly serve all of Nevada and Idaho focusing in the cities of Henderson, Las Vegas, and North Las Vegas, Nevada; and in Ammon, Blackfoot, Idaho Falls, Meridian and Rigby, Idaho.
© 2016 The National Registry of Workers' Compensation Specialists