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13 August 2018
Boston
Reporter Ned Holmes

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AHPs likely to be prohibited in some states

The formation of association health plans (AHPs) is likely to be prohibited in some states, according to the Self-Insurance Institute of America.

Representatives from SIIA attended the National Association of Insurance Commissioners (NAIC) Summer meeting in Boston and included details from the ERISA (B) Working Group’s discussion about AHPs in the SIIA state legislative and regulatory update for August.

The discussion was focused on the way in which states will regulate AHPs following the final rule issued by the Department of Labor (DoL) in June, which allows AHPs to be treated as a large group health plan for the purposes of the Affordable Care Act and may allow them to obtain health coverage at a lower cost.

According to SIIA, some states are likely to prohibit the formation of AHPs, while others will require them to meet all state rating and benefit requirements.

SIIA added: “Many states are currently in the process of responding to the AHP rule, which they are required to do with the DoL within the next several months.”

SIIA predicted AHPs will be a topic of continued discussion at the next NAIC meeting in November.

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