First association health plan approved by Kreidler

The Office of the Insurance Commissioner has approved UnitedHealthcare of Washington, Inc.’s 2014 association health plan for Associated General Contractors of Washington.

This is the first approval for the more than 60 association health plans currently under review for compliance with new federal regulations.

Association health plans are sold by insurers to a large professional or trade group. In the past, small employers within an association had the benefit of buying large group insurance for their employees. Until recent federal regulation, association health plans were exempt from having to meet key consumer protections and from the rating and underwriting standards of the individual or small-employer market.

“Associations offer a lot of benefits to their members, and to their communities. We’ve worked very hard to reach out to as many associations and insurers as possible for the last several years to help them understand the new federal law,” said Insurance Commissioner Mike Kreidler. “We understand many of their members rely on the insurance that associations provide. We’ve offered guidance and advice on what steps associations need to take to comply with the new federal law."