AHPs move forward in Congress

To little fanfare, the Health Insurance Marketplace and Modernization Act moved forward with a win in a key Senate committee vote. Among other things, the bill allows for the creation of Association Health Plans (AHPs), creating a new class of plans called Small Business Health Plans. The provision will allow small businesses to band together across state lines and in associations to buy health insurance, which in theory will allow them to enjoy economies of scale. Blues and other regionally-based insurers are violently opposed to the scheme because it allows competitors to enter their market which do not have to abide by local state regulations.

- see this article from Business Week Online

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