Brokers Set to Take Advantage of Looser AHP Regs | Employee Benefit Adviser

Employee Benefit Adviser’s recent article, “Brokers set to take advantage of looser AHP regs” quotes Katy Stowers, Managing Director and General Counsel. Stowers shares how these eased regulations can benefit small businesses and employers. Read the excerpt below featuring Katy’s quote, or  click here to access the full article.


Employee benefit advisers say allowing small businesses more latitude to purchase health insurance through association plans, as the Trump administration has proposed, could be a beneficial option for providing benefits to their clients that employ up to 150 workers.

“It will be attractive to those smaller employers that want to band together and be able to take advantage of populations with good health,” says Katy Stowers, managing director and general counsel for benefit brokerage and consulting firm FirstPerson in Indianapolis.

Although AHPs have existed for nearly a decade, the Jan. 4 proposal by the Employee Benefits Security Administration would ease regulations that often hindered the creation of these offerings on a wide scale. Namely, these plans would be exempt from several rules in the Affordable Care Act, particularly requirements to provide comprehensive healthcare coverage.

Small businesses with younger and presumably healthier employees would benefit the most from these types of plans, Stowers says.

“You’ve got a lot of technology startups that are hiring younger folks who are relatively healthy but they’re not able to take advantage of [buying health insurance] because they’re community rated in the whole risk pool. If you are able to pull them together and get them into large groups so that they’re rated on their own experience, that’s going be beneficial,” says Stowers.

Continue reading the full article by clicking here.