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October 12, 2017

For Immediate Release:

Statement by Bea Grause, President of the Healthcare Association of New York State, Regarding President Trump’s Executive Order on Association Health Plans

With this action, the President has undermined a part of the ACA on which millions of New Yorkers depend.

The Executive Order expands use of association health plans to allow small business owners, trade groups, and others to band together to purchase health insurance across state lines. Such plans would be exempt from ACA rules and outside the jurisdiction of state regulators.

The Executive Order also allows for the expansion of short-term, limited-duration insurance, which does not cover pre-existing conditions, mental health services, and many other important benefits.

As a result, out-of-state companies offering products with less coverage and fewer consumer protections will undercut New York-regulated insurance companies providing comprehensive coverage mandated by state law.

This approach will almost certainly serve to destabilize the insurance market in New York and lead to unaffordable coverage for the people who need it most.

The Healthcare Association of New York State (HANYS) is the only statewide hospital and continuing care association in New York State, representing 500 non-profit and public hospitals, nursing homes, home care agencies, and other healthcare organizations.