Learn how the program works to give you amazing coverage at affordable rates
Because we have been offering this for a couple of years now, we know that it might not be the solution for every member. And, we got feedback from our members who are using it in order to make improvements. If nothing else, get a quote and see if it can save you money and or give you an important and affordable benefit for your staff.
New DOL Rule Expands Health Plan Options
A new rule from the U.S. Department of Labor (DOL) makes it even easier for small businesses to join AHPs. It broadens the definition of "employer," which means businesses in the same industry, affiliation group or even just those located in the same area, can come together to offer health plans. This opens the door for small businesses and even sole proprietors to access large-group health plans. The result? Potentially lower costs and more flexibility when it comes to healthcare. As a member of LHAT, you now have access to an AHP.
Tailored Health Plans for Individual Groups
AHPs are particularly beneficial for Association/Affinity Groups, like those in transportation or hospitality. These groups can create health plans tailored to the specific needs of their members. For example, a transportation association might offer accident insurance for drivers or include occupational health services in their coverage. This kind of customization leads to more meaningful benefits for members, and since the plans are more relevant, the premiums are often lower compared to standard insurance options.
For smaller employers who are worried about the unpredictability of self-funding, level-funded plans offer a nice middle ground. These plans mix the stability of fully insured plans with the flexibility of self-insured ones. Businesses pay a fixed monthly fee to cover expected claims, plus stop-loss insurance to protect against any unusually high claims. If claims turn out to be lower than expected, employers might even get a refund at the end of the year—making these plans a great choice for risk-averse businesses.
The Bottom Line
In today’s world of rising healthcare costs, AHPs offer a smart, practical way for small to medium-sized businesses to access affordable, tailored healthcare plans. By pooling resources, Association/Affinity Groups can offer their members real savings while improving the benefits they receive. Plus, these groups get the added bonus of boosting their own financial health. It’s a win-win for everyone involved!