President Trump issued an executive order earlier this month that would allow
federal agencies to propose new guidance and reduce existing restrictions on
so-called association health plans and on selling lower cost short-term
insurance.
The President’s order is also
intended to facilitate the sale of health insurance across state lines. In addition, the executive order will expand the availability of
health reimbursement arrangements (HRAs) by allowing employers to create tax
advantaged accounts for employees to foster flexibility and choice regarding
healthcare.
The order sets varying time-frames for the Secretaries of Labor, Treasury and Health and Human Services to
consider proposing regulations implementing the President’s order.
According to Kaiser Health News, it is unlikely that the order will
have any impact on the 2018 health plan enrollment year given the short time
between the end of the current plan year and the sweeping changes called for in
the executive order.
Association
health plans are not a new concept and have both supporters and critics. Supporters point to the ability to offer
lower cost policies to more individuals and will likely benefit younger,
healthier individuals. Critics point out
the past solvency problems of association health plans and state that much of
the savings from these plans comes from not covering benefits such as
prescription drugs, chemotherapy and office visits.
Regardless
of the debate over the President’s order, it is clear that changes are coming
to the health benefits arena. AHCA/NCAL
will continue to keep members apprised as regulations are promulgated and
finalized.
Employers
currently renewing their employee health benefit plan should choose a plan that
is ACA compliant. AHCA/NCAL Insurance Solutions was created to help members save money on their
employee benefit plans.
To explore your
health plan options available through AHCA/NCAL Insurance Solutions, contact Dave Kyllo at 202-898-6312 or Nick Cianci at
(202-898-2841) or email us at ahcainsurancesolutions@ahca.org.
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