There is an ongoing conflict between the federal government and individual states over benefits and HR policies--with states seeking to fill gaps left by the federal government and the federal government claiming that the state initiatives are preempted.

A new proposed regulation opens the way to expand association health plans (AHPs). AHPs are plans sponsored by a group of unrelated employers, linked by factors such as a common industry or geography. These AHP plans will be allowed to offer reduced benefits in order to lower the cost of coverage. The stated goal of the proposed regulation is to make it easier for small employers to buy lower cost health insurance. However, the new plans create risks for employees, employers and insurance markets.