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Association-group plans normally make it mandatory for clients to join an association to get coverage.
Association laws were written making it harder for states to regulate the plans. Because of this assocation plans don't have to comply with all state mandated benefits and can design crazy plans that normally either not pass DOI approval or get held up for years during the approval process.
It's a double-edged sword. Clients of association carriers really have to trust the company since the DOI has limited authority over them. However, typically association companies offer more plans and more choices.
I'm not exactly sure what the state mandates are for. In MD it seems that nothing has to comply with the mandates so what's the point. Small group plans don't have to comply, associations don't have to comply and even MHIP - the state-run plan doesn't have to comply. Go figure.
Association laws were written making it harder for states to regulate the plans. Because of this assocation plans don't have to comply with all state mandated benefits and can design crazy plans that normally either not pass DOI approval or get held up for years during the approval process.
It's a double-edged sword. Clients of association carriers really have to trust the company since the DOI has limited authority over them. However, typically association companies offer more plans and more choices.
I'm not exactly sure what the state mandates are for. In MD it seems that nothing has to comply with the mandates so what's the point. Small group plans don't have to comply, associations don't have to comply and even MHIP - the state-run plan doesn't have to comply. Go figure.
