June 20, 2018

Association Health Plans

The Trump administration has issued a final ruling which will allow small businesses to come together and purchase what are called association health plans. These plans would tend to be cheaper because they will not be need to include benefits now required under the affordable care act. Insurance companies could sell health insurance plans that do not cover things like, maternity, prescription drugs, or mental health. Also, companies would be permitted to charge more for certain industries like restaurants or construction. The other problem is that most major insurance companies probably would not get involved in these plans since they would not be able to predict their risk accurately and that would leave only lower rated and smaller insurance companies issuing policies. Lastly, an announcement like this will bring the scammers out in full force. When you start receiving calls and emails offering you an association health plan, remember that is proposal only applies to group health insurance plans not individual health insurance plans.