H.R.2528 - Association Health Plans Act (119th Congress)
Summary
H.R.2528, the Association Health Plans Act, aims to amend the Employee Retirement Income Security Act (ERISA) of 1974. The bill seeks to clarify the treatment of certain association health plans (AHPs) as employers, allowing them to offer health coverage to their members. This would enable small businesses and self-employed individuals to band together to obtain health insurance, potentially at lower costs.
Expected Effects
If enacted, H.R.2528 could expand access to health insurance for small businesses and self-employed individuals through association health plans. It could also lead to more diverse health plan offerings and potentially lower premiums for some groups. However, it might also affect the risk pools of existing insurance markets and potentially weaken consumer protections.
Potential Benefits
- Increased Access to Healthcare: Small businesses and self-employed individuals may gain access to more affordable health insurance options.
- Lower Premiums: AHPs could potentially negotiate lower premiums due to the larger risk pool.
- Greater Flexibility: AHPs can tailor health plans to the specific needs of their members.
- More Competition: The bill could foster greater competition among health insurance providers.
- Reduced Administrative Burden: AHPs may streamline administrative processes for small businesses.
Most Benefited Areas:
Potential Disadvantages
- Potential for Reduced Consumer Protections: AHPs may be subject to less stringent regulations than traditional health insurance plans.
- Risk of Adverse Selection: AHPs might attract healthier individuals, leaving sicker individuals in the traditional insurance market, potentially raising premiums for the latter.
- Limited Coverage: AHPs may offer less comprehensive coverage than traditional plans.
- Financial Instability: AHPs could face financial instability if not managed properly.
- Complexity and Confusion: Navigating the AHP landscape could be complex for small businesses and self-employed individuals.
Constitutional Alignment
The bill's alignment with the Constitution is primarily related to the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce, including insurance. The bill does not appear to infringe upon individual rights enumerated in the Bill of Rights. However, the expansion of association health plans and the potential impact on healthcare access and affordability could be viewed through the lens of promoting the general welfare, as stated in the Preamble.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).