Association Health Plans are coming.
“Amazon, Berkshire Hathaway, and JPMorgan announced a vague but market-moving plan to launch an independent company that will offer healthcare services to the companies’ employees at a lower cost.” ⁽¹⁾
“Executive Order 13813 directs the Secretary to consider issuing regulations that will expand access to more affordable health coverage by permitting more employers to form AHPs, and the Secretary has been specifically directed to consider expanding the conditions that a group of employers must satisfy to act as an “employer” under ERISA for purposes of sponsoring a group health plan by reconsidering the “commonality-of-interest” requirements under current Departmental guidance. This proposed regulation would define the term “group or association of employers” under ERISA section 3(5) more broadly, in a way that would allow more freedom for businesses to join together in organizations that could offer group health coverage regulated under the ACA as large group coverage.” ⁽²⁾
In just two hours, Amazon erased $30 billion in market value for healthcare’s biggest companies
A vague but market-moving announcement by Amazon, Berkshire Hathaway, and JPMorgan is roiling the industry.