New Hampshire Senate Bill SB160

New Hampshire 2022 Regular Session

• Introduced: 2/9/21
• Refer: 2/9/21
• Refer: 3/2/21
• Refer: 3/11/21
• Report Pass: 12/16/21
• Engrossed: 3/23/22
• Refer: 3/23/22
• Report DNP: 4/22/22

Caption

Relative to multiple employer welfare arrangements.

Impact

The proposed changes under SB160 are positioned as supportive of small businesses by broadening their options in purchasing healthcare. A focal point is to ensure that the enacted provisions preserve the protection of high-risk individuals and groups while preventing adverse impacts on existing individual and small group insurance markets. The bill introduces new eligibility criteria for MEWAs and outlines risk adjustment strategies to mitigate any potential negative consequences on healthcare costs for smaller employers.

Summary

Senate Bill 160 (SB160) aims to amend existing laws regulating multiple employer welfare arrangements (MEWAs) in New Hampshire. The intent of the bill is to facilitate more affordable healthcare options for small businesses through group purchasing mechanisms that allow collective bargaining for better rates from insurance providers. This legislative change seeks to create opportunities for small business owners and self-employed individuals to access healthcare coverage similar to that available for larger employers.

Contention

One of the notable points of contention about SB160 is its potential impact on the insurance marketplace. Critics argue that if not carefully monitored, the new pathways to association plans could lead to adverse selection, where healthier individuals might leave traditional insurance pools for the cheaper options provided by these associations, destabilizing existing plans and inflating costs for those who remain. The bill proposes risk adjustment payments to counteract these effects, but there are concerns about the challenge of effective implementation and oversight of these measures.