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NAIC, Georgetown University Study Say AHPs Will Enable Fraud

A study by the Georgetown University Health Policy Institute warns that the benefit of Association Health Plans to small businesses would be more than offset...
August 2, 2005

A study by the Georgetown University Health Policy Institute warns that the benefit of Association Health Plans to small businesses would be more than offset by the worsening problem of health insurance scams.

"The principal goal of insurance regulation is to protect consumers. It is in this critical area that federal AHP legislation fails so miserably," said Sandy Praeger, Kansas commissioner of insurance and secretary-treasurer of the National Association of Insurance Commissioners (NAIC). "Simply put, allowing federal AHPs to operate outside the authority of state regulators will expose consumers to more fraud and insurance scams. This is not just speculation but fact, borne of years of experience with multiple employer welfare arrangements (MEWA), association plans, out-of-state trusts and other schemes to avoid or limit state regulation."

"While appealing on the surface, AHPs are not a viable option for consumers. The Georgetown report highlights that once consumer protections are removed, AHPs put the healthcare of Americans at risk," Praeger said, speaking on behalf of the NAIC.

NAIC: Association Health Plans are Bad for Consumers

NAIC Statement on AHP Study (7/21/05) 

Association Health Plans: Loss of State Oversight, More Fraud (Georgetown University)

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