Why States Worry That 'Association Health Plans' Will Be Magnets for Scam Artists

Within weeks, the Trump administration will make it easier for small businesses to band together to buy health insurance for their workers. The U.S. Department of Labor is putting the final touches on new rules for the insurance collaborations known as "association health plans." The plans won’t have to include mental health care, emergency services or other benefits required under the Affordable Care Act, making them a cheap alternative to the policies on the health care exchanges.But many states — blue and red — are sounding alarm bells, arguing that by weakening state authority over the plans, the changes would enable unscrupulous operators to sell cheap policies with skimpy or nonexistent benefits.It is not a theoretical concern: Before passage of the ACA in 2010, association health plans flourished across the United States and millions of Americans were enrolled in them.