Dr. Rand Paul Introduces Bill to Expand Health Care Freedom for the Self-Employed and Small Businesses
May 22nd, 2025
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U.S. Senator Rand Paul (R-KY) has introduced new legislation to expand affordable health coverage options for millions of self-employed Americans and employees of small businesses. The of 2025 amends the Employee Retirement Income Security Act (ERISA) to give small business employees, sole proprietors, and gig workers the ability to aggregate together and access health insurance through large-group Association Health Plans (AHPs).
“The Association Health Plans Act gives small businesses and individuals the leverage to negotiate collectively for lower health insurance and lower drug prices. Additionally, the CBO previously estimated that 400,000 uninsured would gain coverage under AHPs and over 3 million people would switch coverage to AHPs,”
Current federal law makes it nearly impossible for self-employed individuals to access affordable group health insurance. The fixes that by allowing them to fully participate in AHPs as part of a broader membership-based group or within a group of other self-employed individuals. These plans would operate across state lines and be treated as fully-insured large-group or self-insured ERISA plans, unlocking better rates and flexibility.
“In Mississippi, 99 percent of businesses are considered small businesses. It is imperative that these employers can offer affordable and accessible health insurance coverage to their employees. The would give small businesses owners and employees more options for health care plans that fit the needs of their employees,” said Senator Wicker.
The bill requires participating associations to have existed for at least two years and to serve a broader purpose than providing health benefits, ensuring stability and accountability. It also prohibits discrimination based on health status and guarantees coverage for individuals with pre-existing conditions.
Member-based associations made up of small employers, self-employed individuals, as well as service providers in the industry, support Dr. Paul’s including but not limited to the following:
The gives self-employed Americans and small businesses the same negotiating power and risk pooling advantages that large employers enjoy—without new mandates, subsidies, or bureaucratic interference. Read the bill HERE.
