Washington bills could harm association health plans

Jan. 1, 2020
WASHINGTON, D.C. — The Automotive Service Association (ASA) is urging Washington state automotive repairers to contact their state legislators to oppose House Bills 1714 and 1712.

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WASHINGTON, D.C. — The Automotive Service Association (ASA) is urging Washington state automotive repairers to contact their state legislators to oppose House Bills 1714 and 1712.

Recently, Washington State Rep. Eileen Cody introduced two pieces of legislation that could be harmful to state association health plans. These bills place a significant burden on the small business community and its efforts to reduce costs.

House Bill 1714 would require association health plans to use small-group community rating rules in establishing rates for participating employers.

House Bill 1712 would require that the entire group of participating employers be treated as one employer; in essence, establishing the same rates for all employers.

Both bills are pending in the House Health Care and Wellness Committee, and there will be a hearing Feb. 6.

Health underwriting and the individual experience of each employer are placed in jeopardy with this legislation. This “community rating” would increase the costs to employers participating in association health plans. Under this proposal, association health plans would eventually become noncompetitive with the insurance companies’ own small-group rates.

A letter has been posted on ASA’s legislative Web site for the convenience of repairers who want to contact their legislators. To access the pre-written letter, visit www.TakingTheHill.com, click on “Current Alerts.”

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