Millions of Americans have health care coverage through a group purchasing arrangement. One type of group purchasing arrangement is the association-sponsored health insurance arrangements or AHPs. AHPs enable small businesses to come together at an association level and pool their employees as a group—with the aim of taking advantage of the additional value and reduced administrative expenses that larger-group plans offer.
Most AHPs are organized around a common professional interest, such as a professional organization or industry group, a trade organization, or a state or local chamber of commerce. Researchers have found that about one-of-every-four small businesses purchases