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Association Health Plan (AHP)

Health insurance plans that are extended to members of an association and marketed to members and small businesses individually. These plans can be affected by state and/or federal regulations or can be exempt from regulations altogether. The regulations can be affected by how the plans are structured, whom they are sold to, and whether they are state-based or national associations.

Adverse Selection

Adverse selection occurs when healthy people opt out of purchasing insurance, and thus the premium prices rise, which then causes additional people to opt out.…