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What about purchasing insurance through a professional or trade association?
Association-sponsored plans let small business owners band together through membership in a business, trade, or professional association and purchase health insurance coverage for their families and employees. This enables small businesses to gain some of the same purchasing advantages large companies enjoy, including lower premium increases due to health status.
The advantages include:
- reduced health plan administrative costs
- increased bargaining power when negotiating contracts with insurers
- a potentially greater range of benefits
Some association-sponsored plans may not have adequate protection against insolvency. In addition, conflicts of interest may arise when an association uses the same insurance company to pay for and administer claims.
For specific information, check with the Virginia Insurance Department to confirm that the plan is insured with an organization licensed by the state. Many association-sponsored plans are multi-state, so you can consult the National Association of Insurance Commissioners for consumer information at http://www.naic.org/cis.
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Part 1: Insurance Basics