Blue Cross Blue Shield Association Reiterates Opposition to Association Health Plan Proposal

The Blue Cross Blue Shield Association on Oct. 8 released two reports that said association health plans "would do more harm than good," CongressDaily/AM reports. BCBSA issued the reports in response to "renewed efforts" by the Bush administration and House Republicans to pass a bill that would allow the establishment of AHPs, under which small businesses could form purchasing pools to reduce the cost of health insurance for employees (Rovner, CongressDaily/AM, 10/9). According to supporters of the legislation, AHPs would make health insurance more affordable for small business owners and employers. However, opponents said that bill would allow AHPs to avoid state regulations and force the "sickest workers" to pay the highest premiums (Kaiser Daily Health Policy Report, 9/16). The first BCBSA report, drafted by Jon Breyfogle of the Groom Law Group, found that the bill would allow AHPs to "cherry pick" the healthiest employees and base premiums on health information received in questionnaires. The second report, drafted last spring by Eleanor Hill, a former Senate investigator, found that AHPs in some cases "would be effectively exempt from both state and federal oversight." BCBSA has "long opposed" AHPs because the plans would compete with the group's plans. Although CongressDaily/AM reports that passage of the legislation to establish AHPs "appears unlikely," opponents have raised concerns that supporters could add the legislation to a House bill to extend unemployment benefits before the end of the year (CongressDaily/AM, 10/9).