4 Things You Need To Know About Association Health Plans
Association health plans (AHPs) are a new type of health plan that allows any group or association to join together to create a health plan. This type of health plan is relatively new to the market and is designed to help provide affordable health insurance to a wider variety of people.
1. Made for People with a Common Interest
Back in the day, only specific groups, such as large businesses, could create association plans. Association plans allowed multiple businesses to join to create a more affordable health care plan for their employees.
With association health insurance, any group of people with a common interest can join to create a health plan. The people need to be in the same industry or profession. For example, a group of waitresses, rideshare drivers, or independent computer programmers could form an AHP. If they share a profession or industry, they can join up together to create an AHP.
2. Work Like Traditional Medical Insurance
An association health plan is designed to work as a major medical health insurance plan. You will have access to an extensive network of doctors through the insurance provider. You will have a health insurance card like you do with a traditional plan that you can use to pay for your car.
3. Present Price Flexibility
With an AHP, there is generally a degree of price flexibility in the plan. These types of plans can set premiums on a more individual basis. With an AHP, someone who is younger and healthier and needs less care will be charged less than someone who is older. ACH can't charge more just because you get sick, and they can't deny coverage because someone has a pre-existing condition; however, they can base the pricing on age.
4. Allow for Custom Coverage
The founding group for an AHP can determine what type of coverage is offered. The plan could offer full coverage for an annual checkup and preventative care and cover less when it comes to surgeries and hospital stays. What is covered and how it is covered can be controlled by each individual AHP.
An AHP allows groups that are not traditionally offered insurance to band together and form a health care group, which will allow everyone involved to access health care at more affordable rates. With an AHP, the group can set up the pricing based on age and customize its coverage. They are easy to join and an affordable way to access coverage.
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