Whats the current problem with Association Health Plans?
Unlike similar corporate and union groups who purchase health insurance at discount rates, AHPs are currently regulated by individual states. The Employee Retirement Income Security Act of 1974 (ERISA) preempts state regulations when dealing with corporate and union organizations, giving them greater flexibility and consistency across state lines and allowing them to prosper. However, ERISA does not currently preempt state regulations for AHPs, forcing AHPs to follow the varied regulations from state to state. As state regulations have tightened over the past decade, they have made running an AHP across state lines an administrative nightmare. In 1990, there were more than 1,000 AHPs. Today, there are fewer than 200.
