Order Permits Buying Insurance Across State Lines
On 11 October 2017 The President issued an
executive order to facilitate the purchase of
insurance across state lines.
This will have huge implications for small businesses that
want to provide health insurance for their workers.
The order directs the Secretary of Labor to act within 60
days to consider proposing regulations or revising guidance,
consistent with law, to expand access to health coverage by
allowing more employers to form Association Health Plans
(AHPs) (also known as Group Hearth Plans).
It directs the Secretary of Labor to also consider
ways to promote AHP formation on the basis of common
geography or industry.
According to the
Health Insurance Portability and Accountability Act of 1996
(HIPAA) the term ‘group health plan’ means an
employee welfare benefit plan to the extent that the plan
provides medical care to employees or their dependents
directly or through insurance, reimbursement, or otherwise.
HIPAA allow groups of employers to joined together to
form association health plans (AHPs) to provide employee
benefits and thereby receive cheaper costs with less
It enables smaller employers to provide health
benefits to their employers on equal footing as larger
Under HIPAA Association Health Plans are not allow to
establish pre-conditions for joining that involves Health
status; Medical condition (including both physical and
mental illnesses); Claims experience; Receipt of health
care; Medical history; Genetic information; Evidence of
insurability (including conditions arising out of acts of
domestic violence) and Disability.
Learn how to obtain
Group Health Insurance for your small business.
The Order also calls for the Secretaries of the Treasury,
Labor, and Health and Human Services to act within 60 days
to consider proposing regulations or revising guidance,
consistent with law, to expand the availability of
Short-Term, Limited-Duration Insurance (STLDI).
The goal should be to allow
such insurance to cover longer periods and be renewed
by the consumer.
Another area covered by the executive order is the expanded
Availability and Permitted Use of Health Reimbursement
Within 120 days, the Secretaries of the Treasury, Labor, and
Health and Human Services shall consider proposing
regulations or revising guidance, to increase the usability
of HRAs, to expand employers' ability to offer HRAs to their
employees, and to allow HRAs to be used in conjunction with
Presidential Executive Order Promoting Healthcare
Choice and Competition Across the United States
Health Insurance Portability and Accountability Act
of 1996 (HIPAA)