The Nevada Division of Insurance has received the first fully-insured association health plan (AHP) filing for the Henderson, Boulder City and Latin Chambers of Commerce in Nevada, following the final rule issued by the Department of Labor (DoL) in June.
The AHP, which will become effective 1 September 2018, is designed for small businesses that are interested in the state.
AHPs are group health plans that allow small employers access to the regulatory and economic advantages available to large employers, by allowing them to be treated as a large group health plan for the purposes of the Affordable Care Act.
Additionally, the DoL’s ruling in June allows AHPs to be formed based on a geographic test, such as a common state, city, county, or a metropolitan area across state lines. The rule will also allow working owners without employees to join.
The Congressional Budget Office estimates that four million Americans, including 400,000 who otherwise would lack insurance, will join an AHP by 2023.
Phil Giles, vice president of sales and marketing at QBE North America, suggested the rule may have a future impact on the medical stop-loss captive market but not for three to five years.
He explained: “Once the self-insured AHPs first establish appropriate solvency and credibility, the market should see a fairly significant number placing medical stop-loss into a captive.”
Nevada Insurance Commissioner Barbara Richardson described the announcement as “exciting news for Nevada”.
She said: “it provides additional insurance options for Nevadans which may fit their personal needs and the needs of their families.”
“Not only does it comply with Nevada’s health insurance market requirements but it also creates a more competitive small group market.”