Executive order speeds up 1si program launch, but plan is controversial nationally
1si's proposed health plan, which would be accessible by its 1,000-plus local business members, is an association health plan, or AHP.
Businesses or individuals form AHPs by banding together to offer insurance to their employees. Their increased numbers, which bring greater negotiating power and larger pools of people to spread out risk, allow them to lower their premiums, said
But larger businesses seeking health plans aren't subject to some key regulations. Their plans don't have to cover the ten "essential health benefits," which include prescription coverage and maternity/newborn care. They also aren't subject to state benefit mandates, and they don't have to abide by the community rating rule, meaning that different employees within an association can be charged a different premium than everyone else based upon their health status.
Association Health Plans were more popular before the Affordable Care Act. In fact, One Southern Indiana offered one in conjunction with
But the Affordable Care Act mandated that each different employer in an AHP had to act in accordance with their size, making them subject to the regulations that large group markets aren't.
"It took away the pricing advantages," Cassis said -- essentially defeating the purpose of putting together an AHP at all.
One
Trump's executive order, signed on
On
It's not official, but Cassis hopes the regulations allow 1si to roll out its AHP by the third quarter of 2018. The chamber of commerce had previously planned to start an AHP, but the process has sped up since Trump signed his executive order.
Currently, many 1si employees feel as if they're priced out of the insurance market,
Even larger employers have told
"I think that our members, we would be providing our members a great service if we were to offer this type of program to them," she said.
One
"Just from our standpoint, if we were to offer a bare minimum insurance program, we are going to upset several of our employees," she said.
Insurance benefits could also affect the quality of workers a business is able to attract, which is a significant issue in
But fewer health benefits are a real concern,
Other news reports have pointed out that AHPs have a history of mismanagement and failure, leaving their members with unpaid medical bills. One
Cassis has sent three established companies request for proposals for 1si's AHP. The chosen business will pay 1si's insurance claims, negotiate pricing and provide customer service, among other things.
So far, it's had the desired effect,
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