A rule has been finalized by the US Department of Labor (DOL) that purportedly allows small business proprietors and specific self-employed individuals to form a group health insurance plan.
According to reports, the modification enhances consumer protections, including coverage for pre-existing conditions, through the implementation of new association health plans (AHPs).
“This reform enables small employers, many of whom are currently experiencing significantly higher premiums and a reduced selection of coverage options as a consequence of Obamacare, to more effectively collaborate and capitalize on the regulatory advantages that large employers enjoy,” stated the Department of Labor.
The objective of AHPs is to provide small enterprises and the self-employed with the necessary bargaining power to secure superior coverage and premium rates. The insurance risk is distributed across a larger population of individuals, similar to the classic risk pooling in insurance.
Group health insurance coverage is not a novel concept; however, the transition to this benefits market is scheduled to occur on September 1. In light of this, how can newly eligible small business proprietors and the self-employed navigate the waters?
Decisely, a technology-driven benefits brokerage and HR services company, has been at the forefront of the establishment of AHPs. In the initial 40 days of a trust membership for retailers, Decisely assisted the owner-operators in saving over US$1.5 million.
Kevin Dunn, CEO of Decisely, stated that an AHP can provide a group of enterprises with substantial financial and operational advantages.
“The AHP’s responsibility is to consolidate and oversee member requirements in order to ensure that they are adequately insured,” he stated.
The AHP collaborates with a broker who subsequently constructs a benefits portfolio for members, negotiates with insurers, and administers the program. Dunn stated, “The objective is to provide a comprehensive solution for the collective procurement of small business benefits.”
Nevertheless, Decisely is not merely a brokerage firm that specializes in benefits. The organization incorporates technology into its offerings. It develops branded websites for partners and administers an online platform for benefits enrolment.
Dunn is convinced that the AHP reform has the potential to revolutionize the healthcare industry. Dunn is ensuring that his team is prepared with innovative solutions while American workers anticipate implementation later this year.
