Many people look to association health plans (AHPs) as a way for them buy health coverage when they do not qualify for job-based group coverage. They are an alternative to individual policies. On the surface, they sound like a great idea - as a member of the association, you are part of a group that can negotiate lower premiums than are available in the individual insurance market. But AHPs are not group insurance plans - and therefore do not have to respect the consumer rights and protections that apply in the group market.
What is an AHP?
An association health plan is insurance coverage that is offered to members of an association. The association must exist for some other purpose than to sell insurance. For example, the National Association for the Self-Employed is an association that offers a variety of discounts and benefits to its members - and one of these benefits is the opportunity to buy health insurance coverage.
AHPs are also marketed to small business owners as a great way to help these small businesses offer health insurance coverage to their employees. However, consumer advocates warn that these plans do not offer the same protections as conventional insurance plans and therefore can lead unwary consumers to financial ruin.
Read on to learn more about what you, as a consumer, should know before buying health coverage through an AHP.
