Associated Health Plans

1
Associated Health Plans

• Pamela Richards
• Leslie Carter

2
Textbook Reference

• Chapter nine Insurance
• Definition
• AHPs are made up of small businesses that join
  together through trade and professional
  associations to purchase affordable health
  benefits.

3
Strength in Numbers

• Small companies premiums are currently 20-30
  above large companies.
• 3/4 of small business market covered by 5 major
  insurers.

4
The Politics of AHPs

• Under Federal Law
• Avoidance of state costs.
• Bone fide trade under uniform federal regulation.

5
Myth 1AHPs will Cherry Pick to insure
healthiest individuals

• Truth
• All interested parties must be provided for.
• Subject to all HIPAA provisions
• AHPs may not adjust charges based on health
  status

6
Myth 2AHP legislation will precipitate fraud and
abuse problems like the MEWAs problems

• Truth
• Includes strong solvency standards
• AHPs would be DOL certified

7
Solvency Standards

• Claims reserves.
• Stop loss coverage.
• Indemnification insurance .
• Additional surplus capital of - 2 Million.
• Fund to cover any unpaid claims.
• Comparatively stringent requirements
• Single employer
• Labor union plans

8
The Goal of AHPs

• Helping Small Businesses
• Lower administrative costs
• receive favorable treatment from insurers

9
Class Questions

• What is one goal of AHP?
• To help large co.s provide employees insurance
• To make insurance co.s more money
• To help small co.s receive favorable treatment
  from insurers
• What does AHP stand for?
• Allied Health Plantation
• Associated Hot Pans
• Associated Health Plan

10
CBPP HOLIDAY PARTY

• DEC 10
• Lucy Cuddy Center
• 4 in advance
• Good times