S.1847 - Association Health Plans Act (119th Congress)
Summary
S.1847, 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 members regardless of their industry or profession.
This would allow small businesses and self-employed individuals to band together to purchase health insurance. The bill outlines specific criteria for AHPs, including minimum membership size, duration of existence, and governance structure.
It also includes provisions to prevent discrimination based on health status and ensures compliance with existing healthcare regulations.
Expected Effects
The primary effect of this bill would be to expand access to health insurance for small businesses and self-employed individuals through association health plans. This could lead to lower premiums and more coverage options for these groups.
It could also shift some regulatory oversight from states to the federal government, depending on how the AHPs are structured. The bill aims to create a more level playing field for AHPs compared to traditional health insurance plans.
However, there is a risk that AHPs could be less comprehensive than traditional plans, potentially leaving some members with inadequate coverage.
Potential Benefits
- Increased access to health insurance for small businesses and self-employed individuals.
- Potentially lower premiums due to the larger risk pool created by AHPs.
- More coverage options tailored to the specific needs of association members.
- Greater flexibility in plan design and administration.
- Could foster competition among health insurance providers.
Most Benefited Areas:
Potential Disadvantages
- Potential for less comprehensive coverage compared to traditional health insurance plans.
- Risk of AHPs becoming insolvent or mismanaged, leaving members without coverage.
- Possible adverse selection, where AHPs attract a disproportionate share of unhealthy individuals, driving up premiums.
- Could undermine the Affordable Care Act (ACA) by creating alternative coverage options that do not meet ACA standards.
- May lead to regulatory challenges and uncertainty.
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3). By amending ERISA, the bill seeks to regulate health plans that operate across state lines.
The bill also touches on the general welfare clause (Preamble), as it aims to improve access to healthcare for certain segments of the population. However, the Constitution does not explicitly address healthcare, leaving much of the regulatory authority to the states.
The Tenth Amendment reserves powers not delegated to the federal government to the states, which could raise questions about the extent to which the federal government can regulate AHPs that operate primarily within a single state.
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).