Health Insurance Daily

Associated Health Plans Are Not a Good Idea

Associated Health Plans (AHPs) are being considered at the federal level to allow small businesses to ban together in an attempt to offer affordable health plans. Kristen Gerencher has written a very good article on AHPs at Investors.com

The intent of AHPs is admirable. Don’t we all want more affordable health care plans for small businesses and all businesses for that matter?

One concern about these plans is whether or not they will work. The purchasing power of large businesses does not necessary exist when it comes to health care. If it did, why would health care costs make up such a significant portion of every General Motors and Ford automobile?

Businesses of every size struggle with the cost of health care. It is no secret that health care costs drive health plan costs.

A second concern with AHPs is that they have very few consumer protections. If one of these plans has financial difficulty, consumers will be left out in the cold to pay for health care expenses delivered but not able to be paid for by their AHP.

Unlike AHPs, actual health insurance plans are regulated and protected by state insurance pools.

posted by Mike @ 9:43 AM