Do AHPs respect states rights?
Yes. AHP legislation enhances states’ rights by providing new criminal penalties, higher solvency standards and better enforcement powers for curbing health insurance fraud. Currently, not all states have statutes dealing with multiple employer plans, and many states suffer from insufficient resources and ineffective enforcement of regulations, leaving fraudulent insurance schemes unchallenged. The National Association of Insurance Commissioners has stated that current law needs to be strengthened to combat insurance fraud. Moreover, AHP legislation requires that the secretary of Labor consult with the states in order to ensure effective and efficient regulation of AHPs.
