The NHBA is continually investigating options for offering an association health insurance plan to members that might provide discounts through group purchasing.

Unfortunately, state regulations do not allow “association plans” consisting of separate small employers to band together to purchase insurance as a large group.

The Senate this year has considered legislation (HB515) to allow associations to group together to purchase health insurance, but the legislation (as of Bar News deadline) had not come to a vote.

Opponents of association plans say that allowing groups of small employers to obtain insurance as a large group can lead to segmentation of the general market for insurance.

Those employers with favorable claims experiences may be able to obtain better pricing on their own, thus driving up costs for the employers who stay in the group.

NHBA Executive Director Jeannine L. McCoy has, over the past few years, worked with members of the Board of Governors and with Sue Morand of the NHBA Insurance Agency, to investigate options for offering an association health plan or benefit to members.

Leslie Ludtke of the NH Insurance Department said that even if new association plans were allowed, members of the group might be disappointed in the results. That’s because employer groups that have higher-than-average claims typically opt into purchasing groups, while those better than average claims don’t join. With a “sicker” profile, premium rates for those in the association group are likely to be higher, Ludtke said, adding that those not familiar with insurance often overvalue the importance of economies of scale. “Even if you have many members in your group, carriers are not necessarily interested. Carriers don’t care about volume, they care about risk,” she said.

McCoy said the Bar Association recognizes that its members are looking for guidance in obtaining health insurance and it will continue its efforts to look for innovative approaches that would help members address this important area of law office management. 

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