DOL rolls out new health care plan for small businesses
The U.S. Department of Labor (DOL) says its new Association Health Plans (AHP) rule will enable small companies to more easily afford to offer health insurance to their employees. The AHP – which stems from an Executive Order by President Trump, will allow small businesses, including self-employed workers, to band together by geography or industry to obtain healthcare coverage as if they were a single large employer. The DOL also said in a statement that AHPs will strengthen negotiating power with providers from larger risk pools and greater economies of scale.
Critics say the plans allow the exclusion of coverage for maternity care, prescription drugs, hospital care, mental-health services and other essential health benefits required by the Affordable Care Act. Buyers cannot be excluded for pre-existing conditions but may pay higher premiums based on age or sex.