By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    6 Essential Strategies for Improving Your Medical Practice
    January 25, 2023
    Staying Positive While Living with Mesothelioma
    January 24, 2023
    The Many Health Benefits of Being Outdoors
    January 17, 2023
    How to Assess a Safe Placement of a Nasogastric or Nasoenteric Tube and Its Complications
    January 19, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Here’s What To Know And Expect About The Future Of Healthcare
    January 22, 2020
    How Your Healthcare Facility Can Ace Their Patient Safety Survey
    February 5, 2021
    Consider These Benefits Of Concierge Healthcare For The Elderly
    July 7, 2020
    Latest News
    Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
    January 25, 2023
    9 Hospitals That Have Introduced Green Initiatives
    January 25, 2023
    Why a Health Retreat Can Be the Best Medicine
    January 12, 2023
    Best Money-Saving Tips for Health Managers
    January 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Association Health Care Plans: Pros, Cons, And Everything In Between
Share
Sign In
Notification Show More
Latest News
ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology
digital dental x-ray
How Does A Digital Dental X-Ray Work?
Dental health
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Association Health Care Plans: Pros, Cons, And Everything In Between
Global HealthcareHealth carePolicy & Law

Association Health Care Plans: Pros, Cons, And Everything In Between

Caitlin Evans
Last updated: 2018/09/05 at 8:01 PM
Caitlin Evans
Share
6 Min Read
SHARE

 

Contents
What Are AHPs?ProsCons

Healthcare in the USA is a topic that is never far from the forefront of any vaguely political discussion about America. The approach that America has adopted to the provision of healthcare puts it at complete odds with the rest of the industrialized western nations of the world. Consequently, many workers in a number of professions have grown used to a near-constant anxiety over how they can ensure they maintain access to healthcare. Association health care plans (AHPs) can provide some respite to this situation for workers in many industries.

What Are AHPs?

An AHP is a type of healthcare plan which is available to groups of people who have what is known as a “commonality of interest.” This means that they work in the same geographic area as one another, or they belong to the same industry or profession.

For example, if you had a job in a kitchen, you could form an AHP with other people who also work in kitchens. In this way, you could put together an AHP that is tailor-made for your industry, meaning it will provide excellent coverage for the most common injuries suffered by kitchen workers, such as cuts, burns, and slips.

More Read

The perfect routine to maintain your weight over the holidays

The Perfect Routine to Maintain your Weight over the Holidays

HR Must Navigate Polarizing Views in Healthcare Workplaces
Top 4 Traits Every Healthcare Provider Should Have
6 Tips for Getting Into Medical School
Do You Need Life Insurance? What Does It Cover?

By allowing a group of people to enroll in the plan, the costs can be spread evenly among them. As the group grows, the cost to each individual will fall, and they will also have more negotiating power as a collective. Association health plans will be another option for small businesses that have been struggling to meet the cost burdens of ACA plans.

An AHP works just like having traditional health insurance, and most AHPs will be partnered with a larger, established healthcare provider and will use their network of doctors.

Pros

The introduction of the Affordable Care Act (ACA) put an end to health insurers determining monthly premiums on the basis of risk characteristics like gender, age, and lifestyle. This was intended to make it possible for those in high-risk groups to still obtain affordable healthcare. Unfortunately, many insurers responded by charging all of their members as if they were high risk and using their healthcare heavily.

AHPs, on the other hand, have much more flexibility with their pricing. Monthly premiums can be set on an individual basis, meaning that they particularly benefit the young and healthy. It is also illegal for an AHP to set premiums according to protected characteristics such as race and religion, nor can they charge higher premiums or deny coverage to those who are already sick.

Another advantage of an AHP is that they are easy to join, regardless of your previous health care coverage. They also qualify under the ACA as minimum essential coverage. This means that there is no tax levied on you or your business for enrolling in one.

AHPs will be regulated in their home state, but in some cases, they are able to offer coverage to those in other states. However, a cross-state AHP can be complicated. There are federal regulations governing what form an AHP can take, while come states include their own stipulations regarding AHPs.

Cons

The way that AHPs are structured means that they will favor some groups of people over others. This is further complicated by the fact that every AHP is different. An AHP for people living in one area might offer fantastic coverage for prescription drugs, but not cover annual checkups as thoroughly. Meanwhile, a group of people in another area, who are of the same demographics, could have a plan that offers the exact opposite.

Anyone who has a significant pre-existing health condition will find themselves fighting against the same forces that were prevalent across the health insurance industry prior to the passage of the ACA. This has led some people to question whether AHPs will slowly hoover up all of the relatively young and healthy members of the population, leaving the sick, elderly, and infirm to seek coverage from ACA plans. What this could mean in the long term is uncertain.

Finally, it should be noted that policy experts have been very critical of AHPs. While Donald Trump’s administration has sought to talk them up as an excellent alternative to what they see as the more oppressive consumer-friendly regulations stipulated by the ACA, there are serious concerns from the medical industry itself, and from those experienced in formulating healthcare-related policies.

There are definitely both strengths and weaknesses to the AHP. Ultimately, they seem to be carrying on the tradition of the US health insurance market to provide some people with excellent coverage, and others with scant coverage. If you are younger, healthier, and you are self-employed or own a small business, you could potentially benefit greatly from an AHP. Those with pre-existing conditions or who belong to high-risk groups will probably be better served by ACA plans.

TAGGED: ACA, AHP, health insurance, Healthcare, healthcare plan

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Caitlin Evans September 5, 2018
Share this Article
Facebook Twitter Copy Link Print
Share
By Caitlin Evans
Caitlin is a medical student, bookworm and fitness enthusiast. She is especially interested in modern medicine and nutrition. Caitlin is a huge supporter of ''knowledge sharing is caring'' philosophy, so she enjoys blogging about medicine and wellness related topics whenever she gets a chance.
Previous Article 4 Low-Impact Exercises To Strengthen Your Core And Relieve Back Pain
Next Article Why The Operating Room Integration System Market Is About To Grow

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health January 26, 2023
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness January 26, 2023
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology January 26, 2023
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology January 25, 2023

You Might also Like

at-home genetic testing method kits
Global Healthcare

Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game

January 25, 2023
green hospitals
Hospital Administration

9 Hospitals That Have Introduced Green Initiatives

January 20, 2023
benefits of going on a health retreat
Global HealthcareHealth

Why a Health Retreat Can Be the Best Medicine

January 12, 2023
saving money in healthcare
BusinessGlobal HealthcareHospital Administration

Best Money-Saving Tips for Health Managers

January 12, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?