Alliance of Community Health Plans Issues Statement on Association Health Plans

WASHINGTON, June 19 -- The Alliance of Community Health Plans issued the following statement by President and CEO Ceci Connolly in response to the final rule allowing association health plans:

"We are disappointed the administration is pursuing a path that can put consumers at risk and drive up costs. Association health plans would likely draw the healthiest consumers out of the exchanges, further destabilizing the already fragile health insurance markets.

"Federal and state rules should promote competition based on quality and cost. Today's rule exacerbates previous actions--including repealing the individual mandate and ending cost-sharing subsidies--that undermine market stability and chip away at vital components that help keep health coverage affordable.

"These plans would provide many consumers with inadequate protection. They don't have to offer the full range of benefits currently required under the law--such as prescription drug coverage, maternity care or mental health and addiction services.

"Association Health Plans can increase options for coverage when they are organized for specific industries, are regulated by the state in which they operate and include solvency requirements and consumer protections. The expansion authorized in this rule is unwarranted, jeopardizes consumers and destabilizes the market. Of the health care groups and stakeholders that filed comments about the association health plan rule, the overwhelming majority opposed it or expressed serious concern.

"As community-based, nonprofit organizations, ACHP member plans are committed to providing the highest-quality coverage and care to the more than 21 million individuals they serve across the country."