This new bill will allow the establishment of “protective covenants” in addition to the current ability for small businesses to make associations or consortium health plans. A positive aspect of protective covenants is “allowing a particular association to submit one bid for the whole group, which is then treated as one large company.”
Consortiums do not have limits on the number of employees a company can have in order to join. Regardless if a company has 5 or 100 employees they can take advantage of the potential distributing of risk across a consortium with many employees.
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