Skip to content
Congress·In Committee·10 months ago

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

Also known as: Association Health Plans Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

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.

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

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

Related News

6 articles
AAMC·2 months ago

House Passes Health Care Bill Without Extending Enhanced ACA Subsidies

The Republican-led legislation aims to make it easier for small businesses to provide health insurance by loosening restrictions on association health plans. The package also includes 'CHOICE plans' for pre-tax insurance purchases and 'stop-loss' insurance protections for small employers.

C=
BenefitsPRO·9 months ago

Senator's bill could help more small employers use association health plans

Sen. Rand Paul introduced the Association Health Plans Act to help self-employed people and small employers buy coverage. While the bill prohibits discrimination based on health status, some insurers worry the plans could destabilize existing group markets by shifting risk pools.

~
Staffing Industry Analysts·7 months ago

IC classification, benefits legislation passes House committee

A House committee approved a package including the Association Health Plans Act, intended to give gig workers and sole proprietors the ability to aggregate for health insurance. Proponents argue it provides certainty for independent workers facing 'administrative whiplash' from regulation.

=

Source Information

Document Type

Congressional Bill

Official Title

Association Health Plans Act

Bill NumberS 1847
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsor

Cosponsors

(5)
R: 5

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.