W EEKLY EDITION FEB 14, 2018
Proposal to Expand Association Health Plans Draws
Feedback …continued
Importantly, the proposed rule released last month would not
preempt any current state regulations. Because the laws vary from
state to state, AHP formation would be challenging without addressing
s tate re gulation, ASAE has said.
"The viability of an AHP will be severely constrained if the AHP must
comply with the myriad of differing regulations in each state," ASAE
said in its comments. "While an AHP within a single jurisdiction might
be successful, most industries and professions cross many state lines."
While state preemption is a critical issue, who is eligible to form AHPs
and who could join for coverage is another. ASAE has pointed out that
the proposed rules assume that the members of an association are
employers, when more than half of all associations are professional
societies with individual members. "The proposed regulation should
be clarified to allow the employers of association members to join the
AHP offered by that association," ASAE said.
ASAE also suggests the administration adopt some additional
restrictions on the formation of AHPs by start - up organizations where
there is not already a membership nexus. "An association would not
risk its reputation and goodwill, and potentially its surv ival, by offering a
thinly capitalized or substandard health plan," ASAE said. "Without this
nexus, a start - up AHP might not be as careful to ensure the success of
the plan."
Because of the complexity of the rules, ASAE also submitted a
memorandum prepare d by its general counsel firm Pillsbury Winthrop
Shaw Pittman LLP, which addresses additional technical issues in the
proposal.
The PSAI is a member of ASAE and Executive Director Karleen Kos is a
Certified Association Executive. ASAE is sharing its comme nts and the
technical memo in advance of the March 6, 2018 deadline comment
deadline so that organizations interested can submit their own
supportive comments as well. The PSAI Board of Directors will be
discussing whether and how to respond as an associat ion. If you would
like to comment at the company level, you can do so at
www.regulations.gov by referencing the
Regulatory Identifier Number RIN 1210 - AB85.
PAGE 3
