WASHINGTON, D.C. – The Automotive Service Association (ASA) is urging automotive repairers in the state of Washington to contact their state legislators in opposition to House Bill 1714, concerning association health plans (AHPs).
On Jan. 27, 2009, Washington state Rep. Eileen Cody introduced two pieces of legislation that could be harmful to state association health plans. The automotive repair industry, like other small businesses, is suffering through these economic times. ASA says these bills would place a significant burden on the small-business community and its efforts to reduce costs.
The first piece of legislation, House Bill 1712, would have required that the entire group of participating employers be treated as one employer, essentially establishing one rate for all employers. H.B. 1712 died in a hearing held Feb. 6, 2009, by the House Health Care and Wellness Committee.
However, Cody’s second piece of legislation – House Bill 1714 – was passed to the Rules Committee for a second reading. This bill would require association health plans to use small-group community rating rules in establishing rates for participating employers.
Health underwriting and the individual experience of each employer would be placed in jeopardy with this legislation. This “community rating” would increase the costs to employers participating in AHPs. Association health plans, under this proposal, 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 state legislators. To access the pre-written letter, visit www.TakingTheHill.com, click on “Current Alerts,” and send a letter directly to your state legislator opposing House Bill 1714.
