The health insurance industry is opposing the proposal. “Americans deserve affordable choices and we are concerned that the changes proposed would leader to higher prices and weaker consumer protections in the small group and individual markets, where nearly 40 million Americans get their coverage,” Kristin Grow, a senior vice president at America’s Health Insurance Plans, told Financial Advisor Magazine.
“We will continue to participate in the formal rulemaking process to recommend alternative solutions to increase competition, choice and affordability,” Grow said.
Critics worry that AHPs may seek to charge those with pre-existing conditions higher premiums or deny them or the employer’s they work for coverage altogether.
The proposal prohibits discrimination “that would restrict membership in the association itself based on any health factor, such as: health status, medical condition (including both physical and mental illnesses), claims experience, receipt of healthcare, medical history, genetic information, evidence of insurability and disability,” the DOL said.
Alexander said that consumers with pre-existing conditions will be safeguarded. “These policies will have the same sort of consumer protections that employees of large companies have, such as protections against being charged higher premiums for having a pre-existing condition."
Sen. Rand Paul, (R-Ky.), who has been working with the Trump administration to expand association health plans for a year, said in a statement that the proposed regulation would ensure employees and the self-employed aren't denied coverage or charged a higher rate because of a pre-existing illness.
Secretary of Labor Alexander Acosta is responding to an executive order issued by President Trump in October to expand access to health coverage by allowing more employers to form association health plans (AHPs).
“Expanding access to AHPs would provide more affordable health insurance options to many Americans, including hourly wage earners, farmers and the employees of small businesses and entrepreneurs that fuel economic growth,” Trump said at the time.
The DOL is accepting public comments on the proposal until March 5.