McSally Introduces Bill to Protect Thousands of Small Businesses From Losing Health Insurance Coverage

WASHINGTON, April 12 -- The office of Sen. Martha McSally, R-Arizona, issued the following news release:

U.S. Senator Martha McSally (R-AZ) introduced legislation this week to prevent thousands of people from losing health care coverage following a federal judge's decision to strike down the Department of Labor's Association Health Plans (AHP) rule.

This rule made it easier for small businesses to band together to provide their employees with comprehensive and affordable health insurance that protect pre-existing conditions along with other patient protections. The legislation would codify AHPs in law to provide certainty for small businesses and families benefiting from AHPs.

"Arizonans deserve access to more choices, greater flexibility, lower health care costs, and health insurance plans that work best for their families while protecting pre-existing conditions," said McSally. "This initiative is already delivering more options to small businesses in southern Arizona where local chambers came together to provide 17 health insurance options for the community. To provide certainty for Arizona's families and opportunities for plan expansion, Congress should codify Association Health Plans into law and that is what this bill is all about."

Fifteen chambers of commerce in southern Arizona banded together with United Health Care to create the Southern Arizona Chamber Benefits Plan, an Association Health Plan developed under the rule. Their plan, established under the DOL rule, brings together the employees of over 7,500 businesses to buy health insurance as a group.

In February 2019, McSally held a roundtable with the Southern Arizona Chamber of Commerce Association. After hearing from the local chambers about their innovative plan, McSally took action to have the rule codified.

In January 2019, McSally met with Secretary Alexander Acosta of the Department of Labor to discuss Association Health Care plans, express her support for the rule, and explain the positive impact Association Health Care plans are having on Arizona's families.

"Introducing this legislation shows Senator McSally's willingness to step up and do what is right for Arizona's small business community," said Robert Medler, Executive Director of the Southern Arizona Chamber of Commerce Association. "Our Association Health Plans offers affordable options and a range in coverage that gives employees and small- business owners control over their health-care coverage and costs. It will give those member businesses who don't have health-care insurance the opportunity to buy it and those who already have health coverage a new option that may save on their costs - this is what Senator McSally is protecting."

Association Health Plans are intended to allow small businesses to group together and leverage power in numbers to obtain comprehensive and affordable health insurance as though they were a single large employer. The coverage offered to association members is subject to the consumer protection requirements that apply to the nearly 160 million Americans who receive coverage from large employers.

Roughly 30 Association Health Plans have formed under the rule so far. According to the Congressional Budget Office, about 4 million people are expected to enroll in an Association Health Plan by 2023, including 400,000 who would otherwise be uninsured.