Healthcare Options for Small Businesses
August 1st, Moon Township
Hosted by Rep. Valerie Gaydos 

Association Health Plans, or AHPs, enable small businesses and associations to access high quality health insurance at competitive rates. By banding together, employers and associations can provide health insurance that meets the needs of both their employees and their budgets. Rep. Gaydos is a strong proponent of AHPs, and sponsored HB555 to bring this opportunity to small businesses and associations throughout the state. The Policy Committee traveled to Moon Township to hear from experts, employers, and the insurance industry to draw attention to this proposal and inform both Representatives and the public of the benefits AHPs can bring to the Commonwealth.

~ Agenda, Bios, & Testimony ~
 
Key Takeaways:

AHP Overview Panel

Emily Greene
Pennsylvania State Director, Americans for Prosperity

  •   AFP strongly supports Rep. Gaydos’ HB555.
  •   Association Health Plans are akin to credit unions or other group-purchasing co-ops.
  •   AHPs allow small businesses to enjoy the same purchasing power as large employers.
  •   HB555 includes the self-employed and independent contractors within the definition of “employee”, further increasing access to affordable health care for all.
  •   AHPs must offer the same care as the Affordable Care Act, and cannot discriminate based on participants’ health status or medical history.


Kurt Imhof
Senior Vice President of Policy & Public Affairs, Life Sciences PA

  •   Life Sciences PA strongly supports Rep. Gaydos’ HB555.
  •   PA is home to thousands of life science establishments, with a majority employing fewer than 10 people.
  •   Life Sciences PA, a trade association, offers its members access to health care through group purchasing programs.
  •   The Life Sciences PA health care group purchasing program offers benefits in the same manner as their discounted lab equipment, office supplies, and travel programs.



Insurance Industry Insights Panel

Noah Karn
Vice President, Insurance Federation of Pennsylvania

  •   Beginning in 1979, AHPs could only be formed by associations of employers within the same industry, with a shared purpose, and the association could not exist solely to pursue benefits.
  •   In 2018, the Trump administration loosened the requirements necessary to form AHPs to allow more small businesses and self-employed individuals to join.
  •   Later in 2018, Pennsylvania and 10 other states challenged the Trump-inspired changes as being contrary to law.
  •   In 2019 the relaxed interpretation of “employer” was successfully appealed. Newly formed AHPs were allowed to continue operations, but no more could be created.
  •   In 2021 the Biden administration paused the appeal.
  •   In 2024 the USDOL returned the rules to the pre-Trump/pre-2018 interpretation.
  •   Possible challenges of AHPs:
  o   Less robust coverage offered for younger/healthier individuals may increase premiums within the broader market.
  o   Coverage may lack maternity care, mental health services, or access to prescription drugs.
  o   AHPs may increase administrative and operational costs for health care insurers, thus increasing overall health care costs.


Small Business Perspectives Panel

Robert McCafferty
Operator, North Country Brewing

  •   Since the enactment of the “Affordable Care Act” (ACA) North Country Brewing’s rates have continued to rise.
  •   An employee’s cancer diagnosis caused rates to rise by 75% in one year!
  •   Good employees have been lost purely due to the lack of affordable quality health insurance.
  •   North Country Brewing was able to enroll in the National Restaurant Association’s AHP, and some employees have been grandfathered into the program following USDOL’s recent changes.
  •   New employees are ineligible to join the National Restaurant Association’s AHP and have asked to just pay the ACA fine so that they can enroll in Pennie.


Howison Schroeder
CEO and Co-Founder, Neuro-Innovators

  •   Health care costs are a significant barrier to small and emerging companies.
  •   30 states allow small start-ups to pull resources to acquire quality health insurance, but not Pennsylvania.
  •   Pittsburgh and Philadelphia struggle to support start-up businesses, largely due to health insurance costs and taxation.


Eddie DeCaria
Co-Owner and Pharmacist, Porter’s Prescription Pharmacy

  •   Small employers have great difficulty competing with the health insurance offered by large employers.
  •   Small employers pay more for less. Higher premiums and deductibles inhibit business growth and the ability to attract new employees.
  •   School districts can pool money for health insurance… why can’t small businesses do the same?


In Case You Missed It:
 
“The lack of affordable health care for small businesses is crushing our innovative economy.”

— Rep. Valerie Gaydos —


 
“The only way to make health care better for everyone is through markets, not mandates.”

— Emily Greene —
Pennsylvania State Director, Americans for Prosperity



 
“AHPs would considerably assist the growth and development of early-stage life sciences companies in Pennsylvania.”

— Kurt Imhof —
Senior Vice President of Policy & Public Affairs, Life Sciences PA



 
“While AHPs offer a potential avenue for providing more affordable health insurance options, they also present significant risks.”

— Noah Karn —
Vice President, Insurance Federation of Pennsylvania



 
“The Affordable Care Act has simply gotten unaffordable.”

— Robert McCafferty —
Operator, North Country Brewing



 
“We need AHPs to compete for the best talent.”

— Howison Schroeder —
CEO and Co-Founder, Neuro-Innovators



 
“We want the ability to compete on an even playing field and aggregate with other small businesses for better access to health care.”

— Eddie DeCaria —
Co-Owner and Pharmacist, Porter’s Prescription Pharmacy


Watch the Testimony:

Full Hearing: Healthcare Options for Small Businesses

AHP Overview Panel:

Emily Greene - Pennsylvania State Director, Americans for Prosperity

Kurt Imhof - Senior Vice President of Policy & Public Affairs, Life Sciences PA

Questions for the Panel

Insurance Industry Insights Panel:

Noah Karn - Vice President, Insurance Federation of Pennsylvania

Questions for the Testifier

Small Business Perspectives Panel:

Robert McCafferty - Operator, North Country Brewing

Howison Schroeder - CEO and Co-Founder, Neuro-Innovators

Eddie DeCaria - Co-Owner and Pharmacist, Porter’s Prescription Pharmacy

Questions for the Panel