Association health plans; rates based on employer member's risk profile.
Impact
If passed, HB 2201 will significantly alter the landscape of health insurance for small businesses and their employees in the state. By permitting the use of employer members' risk profiles to set premiums, the bill is envisioned to lower costs for healthier groups while posing potential challenges for those with higher health care needs. This shift could also draw more businesses into the association model for health insurance, helping them leverage collective purchasing power but possibly leading to disparities in coverage options based on the collective health of member employers.
Summary
House Bill 2201 establishes new regulations for association health plans, allowing premiums to be determined based on the risk profile of the employer members. This aims to create a more flexible and potentially more economical framework for businesses seeking coverage for their employees through associations. The legislation mandates that all members and employees of an employer participating in the health plan be treated as part of a single risk pool, which can offer economies of scale and improved negotiation power with insurers.
Sentiment
The overall sentiment regarding HB 2201 appears to be mixed. Proponents of the bill, primarily from business and employer associations, argue it provides necessary flexibility and cost savings for businesses that previously faced high premium rates. However, some critics, including consumer advocacy groups, express concerns that this could lead to inequitable coverage, wherein healthier groups may benefit at the expense of those with higher health risks or pre-existing conditions. This contention reflects ongoing debates about the balance between market flexibility and the equitable provision of health care.
Contention
Notably, the bill has faced criticism for potentially undermining protections established under existing health regulations, particularly regarding how premiums might be set and assessed. Opponents argue the bill could lead to discrimination against those with pre-existing conditions by allowing plans to be significantly priced based on the overall health risk of the employer members. Therefore, the bill's passage may ignite further discussions around healthcare equity and access, which are pivotal in shaping health policy at both state and federal levels.
Replaces the term "the drug naloxone" with the term "opioid antagonist" in chapters regulating life insurance policies and group life insurance policies.
Replaces the term "the drug naloxone" with the term "opioid antagonist" in chapters regulating life insurance policies and group life insurance policies.