Governors, state legislators, and insurance commissioners from around the country have weighed in against the passage of federal legislation that would exempt AHPs from the consumer protections provided under state law. In fact, all states have already enacted small group insurance reform laws and almost one-half have created their own voluntary plans that help ensure affordable healthcare for all small businesses (according to testimony presented by major organizations like the National Governors Association, National Conference of State Legislatures, and National Association of Insurance Commissioners). View a list of state officials opposing Association Health Plan legislation.

Why do state officials oppose a national proposal for AHPs and MEWAs? They've seen the evidence and know AHPs are healthcare that hurts.

"The Indiana Construction Industry Trust, a federally regulated, quasi-health insurer, was seized after the [Indiana Department of Insurance] found it had $7 million to $8 million in unpaid health claims from its 21,000 covered members, said Greg Thomas, chief deputy insurance commissioner." Indianapolis Star, July 20, 2002

"One of Southern California's larger self-insured MEWAs - created for citrus growers - has folded, forcing tens of thousands of workers [23,000] to switch insurance and leaving nearly 5,000 medical providers with unpaid bills." LA Times.com, 1/04/02

"One case involving Employers Mutual LLC of Carson City, Nevada has left at least 22,000 consumers in 49 states without health-care coverage." Chicago Tribune, 2/19/02

"Arkansas' Insurance Department issued a cease and desist order against the unlicensed United Employers Voluntary Employee Beneficiary Association, which does business in 47 states and has 32,000 beneficiaries…" Chicago Tribune, 2/19/02

"A health insurance trust that covered hundreds of auto dealers, their employees and their families has gone bust leaving behind more than $13 million in unpaid bills to hospitals, doctors, and scores of other creditors throughout New Jersey." The Star-Ledger, 2/24/02