Congress·In Committee·S. 1847

Congress Proposes Allowing Small Businesses and Freelancers to Join Together for Lower Health Insurance Rates

Association Health Plans Act

10 months ago·View on Congress.gov

Part of: Congress Advances Legislation to Expand Association Health Plans

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Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

Key Points

This bill would allow small businesses and self-employed people to join together to buy health insurance as one large group. By forming these associations, small shops and freelancers could get the same types of insurance deals and rules that big corporations currently enjoy.
To qualify, a group must have at least 51 total workers across all the member businesses and have been in existence for at least two years. This is designed to help local shop owners, independent contractors, and consultants who often find it difficult to afford insurance on their own.
The policy includes protections for people with health issues. These groups would be strictly banned from turning someone away or charging an individual more money just because they have a pre-existing condition or a history of illness.
While individuals are protected, the group can look at the general health risk of a specific member business to help set that company's share of the cost. This is intended to keep the plan's pricing stable and fair for all the businesses involved in the group.
These health plans must be run by a board where at least 75% of the members are the business owners themselves. This ensures that the people actually using the insurance are the ones making the decisions, rather than insurance companies or outside corporations.

HealthcareSmall BusinessLabor Employment

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(4)

Aca Marketplace

Neutral

Could draw healthier small businesses away from ACA marketplaces, potentially raising costs for those who remain on marketplace plans.

Chronic Illness

Neutral

Pre-existing condition protections are preserved, but employer-level risk rating could indirectly raise costs for businesses with sicker workers.

Mental Health

Neutral

Plans must follow existing federal health plan rules, but association plans may offer less comprehensive mental health coverage than ACA plans.

Pregnant

Neutral

Pre-existing condition protections apply, but these plans aren't required to cover all ACA essential health benefits like maternity care.

Positive Impacts(1)

Small Business Owner

Helps

Small business owners could band together to buy group health insurance, getting better rates typically only available to large employers.

Milestones

2 milestones2 actions

May 21, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

May 21, 2025

Introduced in Senate

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