Association Health Plans Act

Hozzl · 2023-12-15T15:57:26Z

Explore the details of House Bill 2868 Association Health Plans Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Health. Stay informed on legislative developments.

12/15/2023, 3:57 PM

Summary of Bill HR 2868

Bill 118 hr 2868, also known as the Association Health Plans Act, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to allow small businesses and self-employed individuals to band together through associations in order to purchase health insurance at lower rates.

Under the provisions of the bill, these association health plans would be exempt from certain regulations that currently apply to individual and small group health insurance plans. This would allow for more flexibility in plan design and potentially lower costs for participants.

Supporters of the bill argue that it would provide more affordable health insurance options for small businesses and individuals who may not have access to coverage through traditional means. They believe that by allowing associations to negotiate with insurance providers on behalf of their members, costs can be reduced and coverage can be expanded. Opponents of the bill, however, raise concerns about the potential for fraud and abuse in the association health plan market. They worry that allowing these plans to operate outside of the current regulatory framework could lead to inadequate coverage and financial instability for participants. Overall, the Association Health Plans Act is a controversial piece of legislation that seeks to address the challenges faced by small businesses and self-employed individuals in obtaining affordable health insurance. Its fate in Congress remains uncertain as lawmakers continue to debate the potential benefits and drawbacks of the bill.

Congressional Summary of HR 2868

Association Health Plans Act

This bill provides statutory authority for the treatment of association health plans (AHPs) as single, large employers for purposes of the Employee Retirement Income Security Act (ERISA).

Under AHPs, groups of individuals or small employers join together to purchase health insurance coverage. AHPs were historically subject to the market requirements for individual and small group health plans. In 2018, the Department of Labor issued regulations that allowed an AHP to be considered a single, large employer under ERISA if certain conditions are met. The regulations have been subject to litigation, which is still ongoing.

The bill provides that an AHP qualifies as a single, large employer if it (1) among other listed criteria, has been in existence for at least two years and was formed for a purpose other than offering health insurance; (2) meets any criteria set by Labor in a prior advisory opinion; or (3) meets any other criteria set by Labor through regulations.

Additionally, the bill establishes rules for AHPs to set premium rates and prohibits AHPs from discriminating in coverage based on health status-related factors or denying coverage based on preexisting conditions.

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Current Status of Bill HR 2868

Bill HR 2868 is currently in the status of Bill Introduced since April 25, 2023. Bill HR 2868 was introduced during Congress 118 and was introduced to the House on April 25, 2023. Bill HR 2868's most recent activity was Placed on the Union Calendar, Calendar No. 87. as of June 14, 2023

Bipartisan Support of Bill HR 2868

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 2868

Primary Policy Focus

Health

Potential Impact Areas

Disability and health-based discriminationEmployee benefits and pensionsHealth care costs and insuranceHealth care coverage and accessLabor-management relationsSelf-employed

Alternate Title(s) of Bill HR 2868

Association Health Plans ActAssociation Health Plans ActAssociation Health Plans ActTo amend the Employee Retirement Income Security Act of 1974 to clarify the treatment of certain association health plans as employers, and for other purposes.

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