This week, the House passed H.R. 6703, the Lower Health Care Premiums for All Americans Act, a bill that addresses several long-standing challenges that prevented widespread adoption of Association Health Plans (AHPs). For years, AHPs have been talked about as a solution for small businesses to band together for more affordable health coverage, but legal uncertainty, state restrictions, and liability concerns made them risky or unworkable. This legislation removes many of those roadblocks by enacting the following measures:
- Codifies Association Health Plans into federal law, rather than leaving them subject to agency rules that are subject to change or lengthy and uncertain legal battles. Past AHP efforts relied on Department of Labor regulations that were later struck down or rewritten, making insurers and associations hesitant to move forward on AHPs. H.R. 6703 fixes this by clearly stating that associations can sponsor group health plans.
- Eliminates the “same industry” and geography traps that limit who can join an association plan. Under this bill, legitimate associations can offer health plans even if members aren’t in the same trade, if the association wasn’t created only to sell insurance.
- Resolves the issue of joint-employer liability. Many associations have avoided health plans because they worry that offering coverage could make them legally responsible as an employer.
- Opens the door for self-employed contractors and small shop owners. Sole proprietors and independent contractors are clearly allowed to participate, if they meet basic work and income standards.
- Protects access to stop-loss insurance, which is important for keeping self-insured group plans, including AHPs, from being wiped out by a few high-cost claims.
- Brings long-overdue transparency to pharmacy benefit managers, giving health plans better insight into drug pricing, rebates, and fees.
Next steps
While today’s House vote is a major step forward for AHPs and affordable health insurance, H.R. 6703 is not yet law. The bill now moves to the Senate, where it must overcome the 60-vote filibuster threshold. ACCA will continue to monitor Senate action closely and will keep members updated on any developments that affect contractors’ access to affordable health coverage.
The post House passes bill to make association health plans more accessible for small businesses appeared first on ACCA HVAC Blog.