May 2003                             return to the newsletter contents page

Association Health Plans

Legislation has been introduced in the 108th Congress that would allow associations to offer health benefits to their members and their members' employees across state lines.

Background
The association sponsored-healthcare provision (AHP) provides patient protection by offering access to affordable health care options, which includes, but is not limited to offering immediate 100% health insurance deductibility for the self-employed and the strengthening and expanding of association health plans to small business owners. This proposal seeks to cover the more than half of all uninsured Americans who are either self-employed or whose family is employed by a small business that cannot afford to provide health benefits. The bill accomplishes this by creating a preemption from state laws and state health mandates for health plans that are sponsored by bona fide trade and professional associations. This would provide small businesses the same opportunities that large corporations and many unions currently have.

Latest Action
AHP legislation has been introduced in the both the House of Representatives (H.R. 660) and the Senate (S. 545). The Small Business Health Fairness Act would for allow association- sponsored health plans by permitting associations to provide insurance to association members and their members’ employees under the Employee Retirement Income Security Act (ERISA), which preempts state mandated benefits. The plans would be administered under the Department of Labor, much like corporations are already. Under current law, associations like SEDA cannot offer nationwide healthcare coverage to members.

In the 107th Congress, the House of Representatives voted in favor of an amendment that would allow AHPs. The amendment was attached to a larger “Patients’ Bill of Rights” proposal. The Senate also passed its own version of “Patients’ Bill of Rights” without the association health plans (AHP) provisions included. A House-Senate conference committee was never appointed to deal with the issue in the 107th Congress.


With bipartisan support from many members of the 108th Congress, as well as outspoken support for association health plans by President George W. Bush on several occasions, passage of Association Health Plan legislation in the 108th Congress has a better chance than ever.

Take Action!
Please email your member of Congress NOW and tell them the importance of giving Americans the chance to be insured through Association Health Plans.

For a sample email, please click here to be connected to the American Society of Association Executives website.

Senator talent voices strong support for AHPS at ASAE town hall: Senator Jim Talent (R-MO) spoke to over 60 attendees at an Association Health Plan (AHP) Legislative Update and Implementation Workshop today at ASAE. Sen. Talent reiterated his support for this bill (H.R. 660 and S. 545) and his work in the Senate to move the legislation that would allow for federally regulated AHPs.

Alan Gilbert, Special Assistant to the President for Domestic Policy, also addressed attendees on the Administration’s work on AHPs. Industry experts then provided sessions on the implementation side of AHPs, including legal, administration, marketing and actuarial aspects.

The House Employer-Employee Relations Subcommittee recently approved H.R. 660 that would allow for AHPs, and full-committee mark-up of the bill in the Committee on Education and the Workforce is expected at any time. Currently there are 133 cosponsors in the House and legislation has also been introduced in the Senate (S.545).

Please take the time to visit ASAE's Advocacy Center at http://capwiz.com/asae/home/ and write an email or letter to both your Representatives and Senators and ask them to support AHP legislation.

To learn about issues and to take action, visit ASAE’s Advocacy site at http://capwiz.com/asae/home/ or contact 202/626-2703 or mail to: publicpolicy@asaenet.org. Visit ASAE’s Web site at http://www.asaenet.org

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