This bill would make it easier for small businesses and self-employed individuals to band together to offer health insurance through association health plans. The legislation amends federal employment law to treat qualifying groups or associations of employers as single employers for the purpose of sponsoring group health plans, even if the businesses are in different industries. To qualify, an association must have at least 51 employees when all member businesses are counted together, must have existed for at least two years for purposes other than providing health coverage, and must meet governance requirements including having a board that is at least 75 percent composed of participating employers.
The bill would benefit small business owners and self-employed individuals by potentially giving them access to larger risk pools and lower health insurance costs similar to what large employers can offer their workers. Self-employed individuals who work at least 10 hours per week in their business would be treated as both an employer and employee for participation purposes. The legislation includes consumer protections that prevent associations from discriminating based on health status or pre-existing conditions, and requires that plans follow the same health insurance rules that apply to traditional employer plans.
The bill was reported out of committee in December 2025 and is awaiting floor consideration, with no specific funding provisions or implementation timeline included in the current text.
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