ASSOCIATION HEALTH PLANS WILL CAUSE MORE HARM THAN HELP TO HEALTH CARE CONSUMERS

 The following is a statement released by Ron Pollack, executive director of Families USA, regarding the House Education and Workforce Committee mark of H.R. 660, a bill designed to create Association Health Plans:

"The legislation designed to create Association Health Plans (AHPs) will deliver more harm than help to workers and small business owners. Although the concept sounds reasonable, AHPs will cause significant harm to the existing small employer insurance market. By exempting AHPs from state rules and regulation designed to protect health care consumers, this legislation will do little to help uninsured Americans get access to the health care coverage they so desperately need and may cause more harm than good.

"One of the main flaws in this legislation is that it exempts AHPs from state rules designed to avoid discriminatory premiums that make health coverage unaffordable for the sick and people with disabilities. As a result, the AHPs may attract the healthiest and youngest people and will leave the older, sicker people in plans that will experience large premium increases.

"In addition, this legislation will allow AHPs to avoid state solvency protections. This will leave consumers at risk of paying into a health care plan that may not have the funds to cover their claims.

"The exemption from rules and regulations for AHPs will lead consumers down a slippery slope with little protection. The proposed legislation will cause more harm than good, especially for those who need health care the most."

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org