New healthcare plans will lower costs for small businesses: Secretary of Labor Alex Acosta

By Small BusinessFOXBusiness

Labor Secretary says new health insurance rule will help small businesses

Labor Secretary Alexander Acosta discusses how the department’s new health insurance rule will help small businesses band together to bargain for cheaper health plans.

Secretary of Labor Alex Acosta told FOX Business that the Trump administration’s new health insurance rule will allow small businesses to negotiate lower cost plans.

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“Large companies have so many advantages,” Acosta said during an interview on “After the Bell” on Tuesday. “They have bargaining power and they actually have fewer regulations than the small businesses.”

The Association Health Plans (AHPs) announced by President Trump allow trade and professional associations to offer health care that can be tailored to small businesses’ needs.

“All of these groups and associations can form a trust or within themselves can negotiate for healthcare,” Acosta said.

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The Congressional Budget Office estimates that four million Americans will receive coverage through AHP plans, saving them thousands of dollars.

Acosta said AHPs will empower small businesses to get better deals.

“They can negotiate healthcare in a way that individual small businesses simply cannot,” he said.

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