Sign in Subscribe
Legislative bills

Senator Rand Paul Introduces Legislation to Expand Affordable Health Coverage Options for Self-Employed Americans and Small Businesses

Strategic Insights

— 2 min read

U.S. Senator Rand Paul (R-KY) has introduced the Association Health Plans Act of 2025, a bill aimed at expanding affordable health coverage options for millions of self-employed Americans and employees of small businesses. The legislation would allow small businesses and individuals to aggregate together and access health insurance through large-group Association Health Plans (AHPs), giving them the same negotiating power and risk pooling advantages as large employers.

Currently, federal law makes it difficult for self-employed individuals to access affordable group health insurance. The Association Health Plans Act would fix this by allowing self-employed individuals to fully participate in AHPs as part of a broader membership-based group or within a group of other self-employed individuals. These plans would operate across state lines and be treated as fully-insured large-group or self-insured ERISA plans, unlocking better rates and flexibility.

The bill has received support from various member-based associations, including the American Society of Association Executives (ASAE), the Credit Union Consortium, Inc., and the National Association of REALTORS (NAR). Senator Rand Paul argues that the bill gives small businesses and individuals the leverage to negotiate collectively for lower health insurance and lower drug prices.

Key Takeaways:

  • The Association Health Plans Act of 2025 aims to expand affordable health coverage options for millions of self-employed Americans and employees of small businesses.
  • The legislation would allow small businesses and individuals to aggregate together and access health insurance through large-group Association Health Plans (AHPs).
  • Current federal law makes it difficult for self-employed individuals to access affordable group health insurance, which the Association Health Plans Act would fix by allowing them to fully participate in AHPs.
  • The bill requires participating associations to have existed for at least two years and to serve a broader purpose than providing health benefits, ensuring stability and accountability.
  • It also prohibits discrimination based on health status and guarantees coverage for individuals with pre-existing conditions.
  • The bill has received support from various member-based associations, including ASAE, Credit Union Consortium, Inc., and NAR.
  • Senator Rand Paul estimates that the CBO previously estimated that 400,000 uninsured individuals would gain coverage under AHPs, and over 3 million people would switch coverage to AHPs.

Statistics:

  • 400,000 uninsured individuals estimated to gain coverage under AHPs (CBO estimate)
  • Over 3 million people estimated to switch coverage to AHPs (CBO estimate)
  • 99% of businesses in Mississippi considered small businesses (Senator Wicker statement)

Sources:

  • "U.S. Senator Rand Paul Introduces Legislation to Expand Affordable Health Coverage Options for Millions of Self-Employed Americans and Employees of Small Businesses" (FOR IMMEDIATE RELEASE: May 22nd, 2025)
  • Senator Rand Paul (R-KY) official website
  • Senator Wicker (R-MS) official website
  • American Society of Association Executives (ASAE) website
  • Credit Union Consortium, Inc. website
  • National Association of REALTORS (NAR) website

Read more