here are some exciting new health insurance options for small businesses in Alaska being offered through group association plans. Association health plans allow smaller companies to access health insurance savings associated with large group medical coverage.
In 2018, the Trump administration issued new regulations that made it easier to form association plans. Several association health plans started using this new pathway, but the following year, a federal court rejected those regulations and those association health plans had to be unwound. In the wake of that confusion, a number of associations and insurers took a fresh look at the original rules, dusted them off, and figured out a new way to make them work.
Health insurer Moda brings several new association health plans to Alaska employers with Associated Industries out of Spokane. They have run effective association health plans in Washington state for several years and are now offering access to Alaska employers in five different industries. Moda and Associated Industries are focused on options for employers with fifty employees or fewer and offer a range of other services, including outsourcing for smaller employers. Moda does offer group health solutions for larger employers, just not within the association plans.
These association health plans may lower health insurance costs substantially for the employer that fits with their program. Ask your insurance broker to review these options for you, or reach out to an association sponsor directly.
Greg Loudon is a Principal of Parker, Smith & Feek and leads our Employee Benefits practice. A lifelong Alaskan, Greg has more than 25 years of experience in employee benefits consulting and is active in state and national healthcare reform. Greg can be reached at gsloudon@psfinc.com or (907) 865-6829.