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association health plans

Up to Four Million People Could Access More Affordable Health Insurance Thanks to AHP Rules

Naples, FL — New research from the Foundation for Government Accountability (FGA) emphasizes how beneficial association health plans (AHPs) could be for Americans in the wake of COVID-19. The paper outlines several steps states can take to expand the power of AHPs, which can help small businesses offer more affordable health care options to up to four million people.

Expanding AHPs would also provide fiscal relief to states. State policymakers are already bracing for massive upticks in Medicaid costs due to the COVID-19 outbreak and subsequent economic lockdowns, and are estimated to lose up to 20 percent of their general revenues on average. Freeing up small businesses to form AHPs would help preserve scarce taxpayer dollars currently spent on Medicaid by allowing individuals to find affordable private coverage.

FGA found that health insurance premiums have nearly doubled since 2003. Coupled with the uneven playing field between large and small businesses, these premium increases have forced insurance offer rates among small businesses to plummet by 31 percent. AHPs can provide a significantly more affordable solution for small businesses.

“In the wake of the COVID-19 pandemic, providing affordable health care coverage is the biggest concern for small business owners,” said Hayden Dublois, paper co-author and research analyst at FGA. “As states work to rebuild their economies, AHPs would provide new options for small businesses struggling to offer health insurance, helping uninsured Americans find affordable coverage, and individuals currently receiving Medicaid transition onto employer sponsored coverage.”

Read the full report here.


The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit

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