RD277 - 2010 Annual Report Federal Legislation Pertaining to Association Health Plans - September 30, 2010


Executive Summary:
Under Virginia Code § 2.2-302.1 it is the Commonwealth of Virginia’s official public policy to encourage pooling of health insurance efforts by small businesses, and to support federal legislative efforts that facilitate this pooling, provided that these Association Health Plans (AHPs) remain subject to state law.

AHPs consist of groups of small firms and businesses that have banded together as trade associations to offer health insurance plans for their members and employees. The associations can be based on professional or trade associations (generally with membership limited to a specific trade or business), or can simply be a broad association for small employers who share common personal interests.

AHPs are regulated primarily by the states, although some plans must also comply with federal requirements. Recently, however, there have been efforts in Congress to transition regulatory authority from the state to the federal government. In the 111th Congress, several bills regarding AHPs were introduced to change the current regulatory structure, but little to no action was taken on these bills. During the last year, Congress focused its efforts on changes to reform the existing health care system, but discussion about AHPs was limited.