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What Are Association Health Plans?
Association health plans, or AHPs for short, were designed to allow self-employed individuals and small businesses to come together and purchase health coverage as part of an association. There are already some established AHPs available today and these options will remain in place even after the new policy takes effect. However, the Trump Administration will be encouraging additional plans to enter the marketplace, thus giving small businesses and self-employed individuals the opportunity to get the health coverage they need at a more affordable price.
Association health plans are ran under the rule of the Department of Labor. When small businesses and self-employed individuals band together, they are able to gain access to the types of coverage ordinarily only available to larger employers. This results in fewer expenses and a more customized health plan for workers. The new rule aims to gather more associations and employer groups to form AHPs based on their unique industry or geography. Also for the very first time, business owners and their families (including sole-proprietors), will have the opportunity to access quality health coverage affordably.
Prior to this new rule, AHPs were required to possess association members that shared an economic or other purpose beyond the need for health insurance. Under the new policy, members have the option to join an association for the main purpose of gaining adequate healthcare coverage.
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