Association Health Plans Act of 2021

Association Health Plans Act of 2021

This bill provides statutory authority for certain short-term, limited-duration health insurance plans and association health plans.

The bill permits short-term, limited-duration plans to provide coverage for a period of less than 12 months, not including extensions. Under current law, such plans are exempt from certain market requirements of the Patient Protection and Affordable Care Act, such as coverage of individuals with preexisting conditions.

The bill further permits groups or associations of employers to sponsor fully insured group health plans as if they were employers. Such plans may not discriminate based on the health factors of any prospective plan participant for the purpose of granting an employer's membership in the association or determining a participant's eligibility for benefits or premium amounts.

Bill 117 HR 4547, also known as the Association Health Plans Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to expand access to affordable health insurance options for small businesses and self-employed individuals by allowing them to join together to form association health plans (AHPs).

Under the provisions of the bill, AHPs would be able to offer health insurance coverage to their members that is subject to the same regulations and protections as other employer-sponsored health plans. This would allow small businesses and self-employed individuals to benefit from the same economies of scale and bargaining power that larger employers have when negotiating with insurance providers.

The bill also includes provisions to ensure that AHPs are financially stable and able to provide comprehensive coverage to their members. This includes requirements for AHPs to maintain adequate reserves, comply with state insurance regulations, and meet certain solvency standards. Overall, the Association Health Plans Act of 2021 aims to increase access to affordable health insurance options for small businesses and self-employed individuals, while also ensuring that these plans are financially stable and able to provide comprehensive coverage.