Manatt’s Joel Ario, a managing director with Manatt Health, spoke to CBS News about a recent executive order that aims to broaden the scope of so-called association plans.
Association health plans, according to the publication, are formed when a group of similar small businesses bands together to buy insurance through an association as part of the group insurance market. This can result in much lower premiums than those found in the individual market.
Ario pointed out that the executive order allows associations to form with the express purpose of providing insurance, which means that they don’t have to be an established organization. "When you start allowing associations to form for the purpose of insurance, you encourage cherry-picking of who you want in the group," Ario added.
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