May 24, 2018 Chamber of Commerce Association Healthcare Plan Update
In 2017 President Donald Trump issued Executive Order 13813, promoting healthcare choice and competition across the United States. The order proposes changes to federal law allowing Chamber of Commerce organization to form Association Healthcare Plans. This means that all small businesses, regardless of industry classification or size, would have access AHP’s, which would result in many more health insurance options, further increasing supply and reducing price.
We have been following closely the slow progress of the order. You can read more about the order in an easy format on the Kansas Health Institute website. www.KHI.org
2018 Key Points of the plan:
- Expanded access to association health plans (AHPs) will allow small businesses to band together to provide insurance for their employees and may give them increased bargaining power with insurers and providers.
- Proposed changes to federal law would also allow self-employed individuals to participate in AHPs.
- Under the proposed rule AHPs regulated under federal law would not have to comply with many of the Affordable Care Act’s (ACA) consumer protection and benefits requirements.
- An expansion of AHPs could result in the loss of healthy individuals from the ACA-compliant individual and small group markets, since AHPs could offer plans with reduced benefits and lower premiums.