North Carolina will become the latest state to allow businesses to join together through association health plans to offer health coverage to employees, although the proposal was met coldly by the state's governor.

Gov. Roy Cooper allowed the Small Business Health Care Act to become law on Sunday without his signature, the Raleigh, N.C.-based News & Observer reported. The legislation permits the creation of AHPs that do not meet some of the coverage requirements of the Affordable Care Act, which was a point of contention for Cooper.

"People have a right to be frustrated with the cost of private health insurance plans, but even though there is significant bipartisan support for this legislation, my concerns about the legality of these cheaper plans and their potential negative effects on health care prevent me from signing the bill," Cooper, a Democrat, said in a statement.

Still, Cooper didn't veto the bill, although he expects it to be challenged in court.

AHPs are championed by Republicans and many associations as a way for small businesses to purchase affordable health coverage. President Donald Trump signed an executive order in 2017 meant to expand the use of AHPs, but that effort has been blocked by a federal court. The administration is currently appealing the decision.

A handful of mostly Republican-led states have adopted their own laws expanding AHPs at the urging of national associations and local chambers of commerce. The North Carolina law was championed by the state's Realtors association, NC Realtors.

"Through this action, small businesses and independent contractors will now have an option for quality, affordable health insurance through Association Health Plans," NC Realtors President Asa Fleming said in a statement. "This bipartisan legislation focuses on ensuring that hard-working citizens throughout our state are not allowed to fall into a gap which can't be addressed in other programs." http://bit.ly/2ZpiAIx

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