Associations, Trade Groups Offer Members Group-Like Health Insurance

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An increasing number of small-business owners that do not provide health insurance to their employees and individuals without employer-based health coverage are looking to professional organizations and trade groups that offer "group-like" coverage to their members, the Wall Street Journal reports.

According to the Journal, organizations such as state medical associations, bar associations, william Chambers of commerce Department and other associations oft offer dues-paying members the option of purchasing insurance through them. The Journal reports that coverage purchased through these groups mirrors employer-based coverage, and even with membership fees is often less expensive than purchasing single coverage in the secret market.

However, because purchasing insurance through a professional group is "more loosely regulated" than the individual or employer-based coverage market, the monetary value, quality of coverage and remedies for "consumers world Health Organization feel they have been wronged" tin can differ substantially, according to the Journal. In increase, fraudulent indemnity can be sold through and through both legitimate and sham associations. According to a 2004 report by congressional investigators, gross such scams occurred from 2000 to 2002 that left more than 200,000 policyholders responsible for medical bills of more than $252 million.

In addition, many people confuse association plans with employer-sponsored or mathematical group coverage. Employer-sponsored plans ar mandated by federal police to accept all applicants and lodge all beneficiaries equal premiums. However, association coverage is regulated by state law -- if it is regulated at all -- allowing insurers in association plans to choose their policyholders, according to Kevin Lucia, an assistant enquiry professor at Georgetown University's Health Policy Institute. While younger, healthier policyholders world Health Organization often have fewer pre-existing health conditions can benefit from these plans, others could be charged more than for the same insurance coverage (Knight, Wall Street Journal, 8/12).


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