The National Association of Manufacturers (NAM) has launched an association health plan (AHP) that is available in Indiana to start January 1st, 2020. Mercer developed the health plan through UnitedHealthcare.
An association health plan (AHP) is developed specifically for an association and its members. The NAM AHP is operating under the rules where each group/company must go through underwriting to obtain a final rate. This allows for small companies under 50 employees to have an option outside of the Affordable Care Act (ACA) small group market.
A healthy group could experience a 30% decrease with the AHP vs. the ACA small group plans. The savings come from the underwriting process and how rates are calculated with age bands. The ACA has a restriction on what the scale can be between the youngest and oldest members.
How do I get a proposal on the National Association of Manufacturers (NAM) Association Health Plan here in Indiana?
- 1st Your company’s nature of business needs to be manufacturing.
- 2nd You will need an employee census.
- 3rd Contact Nefouse & Associates, and we can deliver your proposal.
Requirements of the AHP
- 50% of your full-time employees must elect coverage.
- The employer must contribute at least 50% of the employee on premiums.
Do we have to complete applications?
- Groups with less than four employees will have to complete applications.
- If the group is over 5 employees electing coverage, you do not have to complete applications. UHC is using an underwriting technique to retrieve pharmacy history, which allows them to determine risk.
The NAM AHP is another group health option for Indiana manufacturing employers with less than 100 employees.
