The Trump Administration released rules that would make it easier for small business and sole proprietors to purchase insurance as a group. By setting up an Association Health Plan business owners can now band together to purchase insurance as a group. This will be beneficial because the costs will potentially be lower. On top of that, it will count as a business deduction.
Opponents say Association Plans are just a way to avoid the ACA
There are those that feel this is yet another attempt at dismantling the #ACA. Association Health Plans COULD be set up without all of the mandatory coverage that all the ObamaCare plans currently have. Coverage like maternity may or may not be written into the Association Health Plans. As a result, many are strongly opposed to anything that steers away from the ACA or ObamaCare type coverage.
Proponents want choice, and potentially lower pricing
Most people that are in favor of Association Health Plans want two things….cheaper pricing, and choice. Many people feel that they should not HAVE to purchase insurance with coverage they don’t want or need. I’ve heard it said many times, “If someone wants that type of coverage, then THEY should have to pay for it”. There are many people that feel being forced to purchase something just is wrong. Therefore, a large portion of small business owners are in favor of the new rules.
Previous problems with Association Plans
Association Plans have not always benefited those who participate in them. There were some Association Health Plans that were riddled with fraud in the past. These plans ended up leaving nearly 200,000 people with unpaid medical bills, according to some estimates. Therefore, if we WERE to bring back Association Health Plans, there would have to be some sort of oversight. As a result, insurance companies and the government would not be left holding the bag if things went south.
There are no easy answers on any of this stuff. According to new estimates health insurance pricing is due to actually fall a bit in 2019. Uh huh….we’ll see about that!
Steve Brauer-Principal, Brauer Insurance Services, (877) 421-4325, www.brauerinsurance.com