Small Business Majority Applauds Move to Table Bill on Association Health Plans that Could Harm Small Businesses

“We applaud today’s move by the Virginia Senate Commerce and Labor Committee to table SB 1341, which would have expanded access to association health plans and destabilized the marketplace. Had the committee advanced the bill, it would have cleared the path for a less protected insurance market in Virginia, driving up premiums for small businesses that already struggle with their healthcare costs. 

While expanding access to association health plans would have made it easier for some younger or healthier individuals to purchase coverage, ultimately it would have priced out small businesses with older or sicker employees. And consumers who need to access robust healthcare would eventually be priced out of the marketplace as well.

Ensuring strong and robust individual and small group healthcare marketplaces are vitally important to Virginia’s entrepreneurs. This is why we continue to call for the passage of HB2332 to establish a state reinsurance program, which would lower costs in the individual marketplace. Most importantly, stabilizing premiums would allow small business owners to put extra dollars towards their business, especially as many rebuild in the wake of COVID-19. 

Association health plans are dangerous additions to the marketplace that would undermine the small group market and could raise costs for small business owners. Today, the Virginia Senate took a critical step towards preserving healthcare for our small businesses, and we encourage them to stabilize it further by passing a reinsurance program.”