Strengthening Small Enterprises via Association Health Plans
In the realm of health care and small business, two significant pieces of legislation are making waves in Congress. The Association Health Plans Act of 2025 (S. 1847) and the related House bill H.R. 2528 aim to revolutionise the landscape for small businesses, offering them the opportunity to provide affordable, high-quality health insurance.
These bills seek to treat small business associations as single large group health plans under ERISA, a move that expands access and affordability for small businesses and self-employed individuals. By pooling resources, these associations can negotiate lower premiums, access broader provider networks, and effectively achieve economies of scale similar to large companies.
Key safeguards are in place to ensure the integrity and fairness of these Association Health Plans (AHPs). They must have existed for at least two years and serve broad non-insurance purposes. Moreover, the legislation prohibits discrimination based on health status or denying coverage for pre-existing conditions.
According to the Congressional Budget Office, this reform could insure 400,000 uninsured individuals and shift over 3 million people from individual marketplaces into association plans, expanding coverage without increasing federal spending.
While these bills garner support from the U.S. Chamber, some small business groups express concerns. They fear that the expansion of AHPs may destabilise small group health markets, potentially leading to higher premiums or lower-quality coverage, as AHPs are not subject to many Affordable Care Act regulations.
Meanwhile, the U.S. Chamber is actively supporting these bills and continues to champion policies that drive economic growth and improve the quality of life for individuals and communities across the nation.
On a separate note, the Chamber's Health Policy Center recently organised the Health Innovation Summit, an event that explored tech-driven health solutions. Top administration officials, current and former members of Congress, and industry leaders convened for the inaugural event, marking a significant step towards advancing health care innovation.
Lexi Branson, Vice President of Health Policy at the Chamber's Health Policy Division, played a pivotal role in this event, underscoring the Chamber's commitment to driving change and progress in the health care sector.
Small businesses remain the backbone of the American economy, and these bills aim to provide them with the tools they need to offer better health insurance options to their employees, thus lowering costs and expanding coverage access. The future of health care in America is undoubtedly an exciting one, as we navigate the intersection of policy, technology, and business to create a more accessible and affordable health care system.
- The Association Health Plans Act of 2025 (S. 1847) and the related House bill H.R. 2528, making waves in Congress, are designed to offer small businesses affordable, high-quality health insurance.
- These bills aim to treat small business associations as single large group health plans under ERISA, expanding access and affordability for small businesses and self-employed individuals.
- By pooling resources, these associations can negotiate lower premiums, access broader provider networks, and achieve economies of scale similar to large companies.
- Key safeguards are in place to ensure the integrity and fairness of these Association Health Plans (AHPs), such as requiring a two-year existence and serving broad non-insurance purposes.
- The legislation prohibits discrimination based on health status or denying coverage for pre-existing conditions.
- According to the Congressional Budget Office, this reform could insure 400,000 uninsured individuals and shift over 3 million people from individual marketplaces into association plans, expanding coverage without increasing federal spending.
- While these bills garner support from the U.S. Chamber, some small business groups express concerns about potential destabilisation of small group health markets, leading to higher premiums or lower-quality coverage.
- The Chamber's Health Policy Center recently organised the Health Innovation Summit, exploring tech-driven health solutions and featuring top administration officials, current and former members of Congress, and industry leaders.
- Small businesses, being the backbone of the American economy, will potentially benefit from these bills, as they offer better health insurance options, lower costs, and expanded coverage access, driving innovation and economic growth.
