CEO DATELINE - Idaho, Wisconsin consider allowing association health plans
CEO DATELINE - Idaho, Wisconsin consider allowing association health plans
- February 21, 2018 |
- Walt Williams
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State lawmakers in Idaho and Wisconsin are considering allowing small businesses to join together to purchase insurance through association health plans that are exempt from some Affordable Care Act coverage requirements.
Association health plans have become a popular option in recent months for Republicans frustrated by the lack of success in efforts to repeal Obamacare. They are also popular among associations that view the plans as a way to bring down employee health insurance costs for members' businesses. However, many insurance and medical groups argue the plans would ultimately raise costs for many businesses and individuals by diverting younger, healthier workers to cheaper and less comprehensive insurance, leaving older and less healthy employees footing a larger part of medical expenses.
Last year President Donald Trump signed an executive order directing the U.S. Department of Labor to explore ways to expand the use of association health plans. Now at least two Republican-controlled states are attempting to do the same.
Idaho Gov. Butch Otter signed an executive order in January ordering the state Department of Insurance to seek "creative options" offer insurance that does not meet ACA mandates. One of the options put forward is allowing businesses to band together through association health plans, according to industry news site HealthPayer Intelligence. http://bit.ly/2olKcKc
Wisconsin lawmakers are considering a similar proposal. At the urging of Gov. Scott Walker, the GOP-controlled State Assembly is rushing forward with legislation to expand the use of association health plans there, the Wisconsin State Journal reported. In addition to ACA exemptions, the original bill would have exempted association health plans from state coverage mandates. However, the text was amended to mandate that plans cover certain chiropractic treatments after the Wisconsin Chiropractic Association objected to the exclusions. http://bit.ly/2EFTNCE
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