What Industries & Associations Endorse the Changes to Association Health Plans and Why?
Association health plans (AHPs) are in the news like never before following the issuance of a recent rule by the U.S. Department of Labor.
The rule makes it possible for small businesses, including self-employed workers, to band together to purchase health insurance through an association health plan. It also relaxes some of the requirements of the Affordable Care Act (ACA) to make a wider variety of plan options available through association health plans at more competitive prices.
“Association health plans are about more choice, more access, and more coverage,” said Secretary of Labor Alexander Acosta.
Critics of the rule cite concerns that the plans may not be as comprehensive as those required by the ACA and claim it will weaken the ACA by drawing people away from more expensive marketplace plans that are required to include specific coverage elements knows as essential health benefits.
However, a number of associations and industry leaders have endorsed the rule and lauded association health plans as a way for small businesses to access more affordable, quality health insurance plans for their employees and their families.
Here is what they are saying:
“Today is a great day for America’s franchise job creators and their employees in the fight for high quality, less expensive health coverage. We applaud the Department of Labor and the Administration for paving the way for franchise businesses to utilize AHPs [association health plans] and make the delivery of products and services more affordable for small business owners, employees, and their customers.”
-International Franchise Association President and CEO Robert Cresanti
“ … We are grateful to President Trump for addressing regulations that make it harder and costlier for small business owners to provide healthcare for themselves and their employees. The cost of healthcare has been the number-one problem for small businesses for more than 30 years. NFIB has fought to remove penalties on small businesses for helping their workers buy health insurance, and the President’s action today advances that effort.”
-CEO of National Federation of Independent Business Juanita Duggan
“I’ve seen first-hand how small businesses and franchisees are challenged in offering competitive health benefits. If the same principles are used that have allowed franchising to provide economic opportunity to millions of Americans, we can also provide greater opportunities for quality, affordable health insurance coverage and health care through Association Health Plans.”
-CEO of FASTSIGNS International Catherine Monson
“NRF is a longstanding supporter of association health plans … associations can bring necessary competition to underserved insurance markets.”
-National Retail Federation Vice President for Health Care Policy Neil Trautwein
“Large companies with thousands of employees have their own plans but a small business like mine can’t possibly negotiate rates close to what they can get. By letting associations negotiate for their members, small businesses will finally be able to take advantage of better rates their employees can afford and provide better coverage in the process.”
-Dave’s Soda and Pet City Owner Dave Ratner
“By allowing self-employed individuals and small businesses to pool their resources and offer affordable insurance options, this administration is making good on its promise to improve our health care system.”
-TCW, Inc. President Dave Manning
“Today’s proposal is a step in the right direction for improving access to affordable, quality health care for all Americans. We were pleased in October when President Trump signed an executive order allowing self-employed individuals to pool together to purchase health insurance plans sponsored by larger associations and groups, and we are happy to see his Administration take the next step in advancing this plan today.”
-ATA President and CEO Chris Spear, commenting on the draft rule.
“Now that the Department of Labor regulations have been issued, the Chamber’s intention is to work with an insurance carrier to provide quality health care coverage for Nevada’s small businesses and sole proprietors as quickly as possible.”
-Las Vegas Metro Chamber of Commerce President and CEO Mary Beth Sewald
The reaction from small business is perhaps better understood in the context of findings from the Kaiser Family Foundation that only 50 percent of firms with fewer than 50 workers offered health benefits to employees in 2017, down from 59 percent in 2012. Of those small businesses, 44 percent cited high costs as the reason.
The survey also noted that workers covered by small firms generally paid more to cover their families. In fact, the survey found that workers covered by small firms paid on average $1,550 more each year for family health coverage than workers covered at large firms. Association health plans allow small firms to access some of the same benefit packages currently available to large firms.
