Health Care Insurance Issue
June 2004
Background:
Since 1986 NAWBO has supported the creation of Association Health Plans (AHPs) to improve access and choice for women business owners with respect to medical care for their employees.
Facts:
- There are strict requirements under which only bona fide professional/trade associations that have existed for over three years can offer AHPs.
- The solvency standards are equal to or more stringent than virtually all similar state insurance laws and go beyond the requirements for plans governed by the Employee Retirement Income Security Act (ERISA).
- AHPs are subject to the Health Insurance Portability and Accountability Act (HIPPA) that makes it illegal to deny coverage to any eligible participant based on the health status of an individual employee.
- The Department of Labor will have regulatory authority to ensure that AHPs are properly administered and implemented.
- AHP’s will have to register with state authorities and abide by their strict disclosure and reporting procedures.
Although AHPs would not solve all the problems in the small group market nor make health care cheap, it would provide more competition into the market, reduce unnecessary regulation and administrative costs and make health coverage more affordable for our members.
Situation:
The House passed the Small Business Health Fairness Act of 2004 (H.R. 4281) on May 13th for the seventh time and the President has publicly stated he will sign such a bill. However the Senate still has not acted to pass the Small Business Health Fairness Act (S. 545) and the legislation is languishing in the Senate Health, Education, Labor and Pensions (HELP) Committee.
Questions/Comments:
Contact Diana Wilhite at (509) 534-9001.
