On Thursday, the Trump administration released new proposed rules to carry out an executive order the President signed in October expanding association health plans to self-employed individuals and small businesses. Supporters of the proposed rule claim that association health plans would be less expensive than plans that available today. Challengers to the bill – including insurers – feel these plans would provide poor coverage and could further damage the already weak ACA marketplaces.
“Association health plans could provide a viable opportunity for small employers to have access to more options and potentially lower costs as long as the programs were established long-term and there was not abuse or adverse selection,” said Jonathan Edelheit, President, Health Care Reform Center & Policy Institute. “This could provide some exciting times and innovation and will disrupt things.”