Association Health Plans Act

Summary of HR 2528 - Association Health Plans Act

Overview

The Association Health Plans Act (HR 2528) aims to expand access to affordable health insurance options for small businesses and self-employed individuals by allowing them to band together to purchase health insurance through associations. This legislation is designed to enhance the availability and affordability of health coverage, particularly for those who may struggle to find suitable plans in the individual market.

Key Provisions

• Formation of Association Health Plans (AHPs): The bill permits small businesses and self-employed individuals to form associations that can offer health insurance plans to their members.
• Regulatory Flexibility: AHPs would be exempt from certain state insurance regulations, allowing them to operate under federal guidelines, which proponents argue could lower costs and increase plan options.
• Eligibility Criteria: The bill outlines specific criteria for associations to qualify as AHPs, ensuring that they are organized for a legitimate purpose beyond just providing health insurance.
• Consumer Protections: While the bill aims to reduce regulatory burdens, it also includes provisions to protect consumers, ensuring that AHPs meet basic health coverage standards.

Impact

• Target Audience: The legislation primarily affects small businesses, self-employed individuals, and their employees, who may benefit from more affordable health insurance options.
• Insurance Market Dynamics: By allowing AHPs to operate with fewer restrictions, the bill could lead to a shift in the insurance market, potentially impacting traditional health insurance providers and the overall competitive landscape.
• State Insurance Markets: The bill's provisions may affect state-level health insurance markets, as AHPs could draw members away from state-regulated plans.

Legislative Process

• Introduced: April 1, 2025
• Committee Referral: The bill was referred to the House Committee on Education and Workforce upon introduction.
• Committee Actions:
  • A mark-up session was held on June 25, 2025, where the bill was ordered to be reported with amendments by a vote of 21-15.
  • The bill is currently under consideration by the committee, with further actions pending.

Sponsors

The bill is sponsored by Tim Walberg and has multiple cosponsors, including notable members such as:
- Stephanie I. Bice
- Wesley Hunt
- Glenn Thompson
- Adrian Smith
- Ryan Mackenzie
- Kevin Kiley
- Rick W. Allen
- Glenn Grothman
- Paul A. Gosar
- Michelle Fischbach
- Dan Crenshaw
- J. French Hill
- Christopher H. Smith
- Andy Biggs
- Mark Harris
- Jefferson Van Drew
- Bill Huizenga
- Burgess Owens
- Henry Cuellar

Related Legislation

HR 2528 has a companion bill in the Senate, S 1847, which seeks to address similar issues regarding health insurance access for small businesses.

This summary provides a comprehensive overview of HR 2528, detailing its purpose, key provisions, potential impacts, and the current status of the legislative process.