Association Health Plans: Maintaining State Authority is Critical to Avoid Fraud, Insolvency, and Market Instability

By Kevin Lucia and Sabrina Corlette

Earlier this month, the Trump Administration issued a proposed regulation that would allow individuals and small employers to more easily purchase health insurance across state lines through professional or trade associations. Such association health plans would be treated as large-employer health plans under federal law, thereby exempting them from Affordable Care Act rules that generally apply to small employer and individual market health insurance.

In their latest post for the Commonwealth Fund, CHIR researchers Kevin Lucia and Sabrina Corlette examine the proposed rule’s impact, including heightened risks of fraud, insolvency, and market instability. They further analyze outstanding questions about the rule’s effect on states’ authority to protect consumers and prevent adverse selection in the individual and small-group markets. You can read their full post here.

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