Update On Association Health Plan Legislation

Because Senator Enzi is the chairman of the HELP Committee, his proposal is the most likely to move forward for full Senate consideration. However, Senators Snowe and Talent have also been working very quietly with Senator John Kerry (D-MA) on a compromise AHP bill that could possibly receive broad bipartisan support in the Senate. A summary of this proposal is attached as well. Basically, this approach combines the core elements of S. 406, with both fully-insured and self-funded AHPs, albeit with significant changes from S.406 aimed at addressing opponents' concerns, along with Senator Kerry's idea of establishing regional health insurance pools that are regulated by the states and are open to all small businesses.

It is unclear at this point as to when Senator Enzi plans on bringing the bill before the HELP Committee. If we are to get a bill enacted into law, we will have to compromise in several areas. However, it is important to keep in mind that we have stronger allies in the House, so once a conference is convened to iron out the differences in both bills it is conceivable that we'll have a greater shot at retaining many of the key components of the original AHP bill.

If you have any questions or comments, please let me know.