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Legislators approve association health plan bill


The Iowa Senate has moved forward with a bill that would enable small businesses to form association health plans as a potential cost-saving option, the Des Moines Register reported. The proposal, Senate File 2349, passed the Iowa Senate on a 33-17 vote Monday evening. It effectively would allow insurance carriers to resume selling small-employer policies that don’t meet ACA rules, such as by not covering maternity care or addiction treatment. Supporters say the measure could provide another option for Iowans who are priced out of the individual market, but detractors say the proposal would encourage insurers to cherry-pick healthy workers out of the general risk pool and drive up costs. The Senate bill now goes before the Iowa House.

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