Labor Department to propose expansion of association health plans, which could lower insurance costs for some workers
The agency has submitted a rule proposal to the White House that could allow more workers to get health insurance through association health plans.
The Labor Department's proposal to expand association health plans could have a significant impact on the US healthcare market, particularly for small businesses and self-employed individuals. Association health plans allow small businesses and self-employed individuals to band together to purchase health insurance as a group, which can lead to lower premiums due to the larger pool of participants.
This proposal is part of the Trump administration's efforts to increase access to affordable healthcare options. By expanding association health plans, more workers may be able to access health insurance that is more affordable than individual plans. However, critics have raised concerns that these plans may not offer the same level of coverage as traditional employer-sponsored plans, and may leave some individuals with inadequate protection.
The proposal's impact on the healthcare market and the economy will depend on its final form and implementation. To watch next: the White House's review of the proposal and the potential release of the final rule. Additionally, market participants should monitor how insurers respond to the potential changes and whether they begin offering more association health plans. The proposal's effect on the overall healthcare market, including potential changes in insurance premiums and coverage, will also be closely watched.
Originally reported by cnbc.com. CurrencyNews adds analysis for finance & markets readers.