August 2005

House passes AHP bill

The U.S. House of Representatives passed the bipartisan Small Business Health Fairness Act (H.R. 525) which creates association health plans (AHPs), allowing small businesses, trade associations, or business organizations to form associations and purchase health insurance for their workers at a lower cost.

The AHP bill was passed Tuesday, July 26, by a vote of 263-165. It has passed the House seven times in the last 10 years but has always been opposed by the Senate.

By exempting AHPs from many state regulations, the bill gives small businesses freedom from costly state-mandated benefit packages and lowers their overhead costs by as much as 30 percent — benefits that large corporations and unions already enjoy.

Critics said AHP plans could lead to bare-bones coverage for some workers and exclude others, leaving them to face even higher bills. The American Chiropractic Association has been an active member of a coalition of groups opposing the enactment this legislation, citing that it “would further erode state insurance equality and any-willing-provider laws as well as similar provider and consumer protections.”

A broad and diverse coalition of more than 180 groups has endorsed the bill, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the American Farm Bureau Federation, the Associated Builders and Contractors, The Latino Coalition, the National Black Chamber of Commerce, the National Association of Women Business Owners and the National Restaurant Association.

More information on affordable healthcare benefits for small businesses is available in the April 29, 2005, issue of Chiropractic Economics (Vol. 50, No. 6).

Sources: The Coalition Supporting Access & Choice Through Association Health Plans, www.ahpsnow.com, Reuters, www.reuters.com, and American Chiropractic Association. www.amerchiro.org.

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