On June 19, 2018, the U.S. Department of Labor released a final regulation to implement President Trump’s executive order calling for the expansion of association health plans (AHPs). The new rule raises numerous issues affecting state regulation, insurance markets, and the consumers and individuals who buy private insurance coverage. In her latest entry to the State Health & Value Strategies program’s “Expert Perspectives” blog, CHIR’s Sabrina Corlette outlines key provisions of the AHP final rule and discusses implications for state regulation, market stability, and consumers’ access to affordable, high quality coverage. You can read the full article here.
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There is no insurer selling individual health plan in Guam since ACA became law. With a more permissive definition of Association health plan it is possible that insurers will sell individual health plans in this territory. The health coverage under the new AHP could have the bare benefits coverage with high deductible and low premium for young and healthy. Adverse selection will become a reality. This could result to a higher premiums for the small market and possibly even the large market as young and healthy population may try to save a dollar without realizing that a catastrophic event could result to huge dollars of health care costs.
I don’t fully understand the health insurance market, especially on Guam. What I do know is there is only one health insurance company on Guam that offers individual health plans, as I inquired for my family a few months ago. I just recently became a stay-at-home mom and my husband is a sole proprietor. The only family plan available has a premium price tag of $2400/ mo with a $1000 deductible! Maybe some families can afford this on a single income, but I would assume most can’t, especially with housing, fuel, power and groceries at such a high cost on Guam. I would love other options and the possibility of being insured under a AHP, which would allow me to insure my family. We don’t qualify for Medicaid or MIP and even if we did there are not very many providers who accept these plans and if they do there is usually a very long wait for care…
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