Supporting Small Businesses via Association Health Programs
The U.S. Chamber of Commerce is backing two bills in Congress, the Association Health Plans Act of 2025 (S. 1847) in the Senate and its counterpart, H.R. 2528, in the House of Representatives. These bills aim to improve access to affordable, high-quality health insurance for small businesses and self-employed individuals.
The proposed legislation, if passed, would enable these groups to form or join Associations Health Plans (AHPs). AHPs leverage expanded pooling and collective bargaining power to obtain lower premiums and broader provider networks, similar to the advantages enjoyed by larger employers under the Employee Retirement Income Security Act (ERISA).
Key details include:
- By banding together, small businesses and self-employed individuals can unlock economies of scale, increasing their negotiating leverage with insurers and providers, resulting in more competitive insurance options.
- The bills build on employer-sponsored insurance frameworks, which currently cover over 150 million Americans, aiming to extend benefits to smaller market segments that face higher costs and fewer options.
- The U.S. Chamber of Commerce supports these bills as pragmatic, market-based solutions to reduce health insurance costs and improve coverage quality for the backbone of the American economy, small businesses.
Benefits for small businesses and self-employed individuals are primarily improved affordability, enhanced coverage options, and increased market power in the health insurance marketplace. This, in turn, helps them offer competitive benefits to employees and sustain growth.
The bills include critical safeguards to ensure the integrity and fairness of AHPs. For instance, associations must exist for at least two years, serve broader non-insurance purposes, and prohibit discrimination based on health status or denying coverage for pre-existing conditions.
According to the Congressional Budget Office, AHPs could insure 400,000 previously uninsured individuals, helping to expand coverage for America's workforce.
The U.S. Chamber of Commerce, through its Health Policy Center, has been a steadfast advocate for employer-sponsored insurance. It recently submitted responses to Requests for Information (RFIs) issued by the Department of Health and Human Services (HHS), the National Institutes of Health (NIH), and the Centers for Medicare & Medicaid Services (CMS), as part of advocating for improved access to care.
The Chamber continues to champion policies that are related to Health Care and Small Business, as demonstrated by the Health Innovation Summit it organized earlier this year. The summit brought together administration officials, members of Congress, and industry leaders. Through the summit, the Chamber continues to advocate for policies that improve quality of life and drive economic growth.
In conclusion, the Association Health Plans Act of 2025 (S. 1847) and H.R. 2528 aim to provide a market-based solution for small businesses and self-employed individuals, allowing them to band together for better buying power and access to lower premiums and broader provider networks. If passed, these bills could significantly improve access to affordable health insurance for a large portion of the American workforce.
- The U.S. Chamber of Commerce is supporting two bills in Congress, S. 1847 and H.R. 2528, that aim to boost access to affordable, high-quality health insurance for small businesses and self-employed individuals.
- These bills, if passed, would enable small businesses and self-employed individuals to form or join Associations Health Plans (AHPs), offering them economies of scale and increased negotiating leverage with insurers and providers.
- AHPs, similar to larger employers under the Employee Retirement Income Security Act (ERISA), can provide competitive insurance options, enhanced coverage, and increased market power in the health insurance marketplace.
- Small businesses and self-employed individuals can benefit from improved affordability, broader provider networks, and the ability to offer competitive benefits to employees, thus helping them sustain growth.
- Critical safeguards in the bills ensure the integrity and fairness of AHPs, prohibiting discrimination based on health status, denying coverage for pre-existing conditions, and requiring associations to exist for at least two years and serve broader non-insurance purposes.
- The Association Health Plans Act of 2025 and H.R. 2528 could potentially insure 400,000 previously uninsured individuals, expanding coverage for America's workforce.
- The U.S. Chamber of Commerce, through its Health Policy Center, has been advocating for employer-sponsored insurance, recently submitting responses to Requests for Information (RFIs) issued by various departments to improve access to healthcare.
- The Chamber continues to champion policies related to Health Care, Small Business, and the general news, evidenced by its organization of the Health Innovation Summit this year, bringing together administration officials, Congress members, and industry leaders.
- These bills represent a market-based solution for small businesses and self-employed individuals, allowing them to band together for better buying power and access to lower premiums and broader provider networks, potentially significantly improving access to affordable health insurance for a large portion of the American workforce.
