Hawaiian Governor approves association health plans

The bill was part of the administration's package of bills, which lawmakers in the finance, health and consumer

committees approved last month.

Association health plans have been touted as a way for small and solo employers to increase their

bargaining

strength by banding together through such groups as the Hawaii State Bar Association and the Chamber of

Commerce of Hawaii.

Twenty-four states have legislation enabling association health plans.

In Hawaii, the only remaining plan that resembles a purchasing coalition is the Legislative Information Service

of Hawaii.

The organization attributes its success to tight underwriting guidelines and close monitoring.

New businesses must wait three months before becoming eligible for the LISH plan, and if they leave the

plan they can't be readmitted for a year. Additionally, LISH administers the entire program, from reviewing