The Washington State Office of the Insurance Commissioner has warned association health plans they cannot discriminate against their members by using health information in setting rates.

The Washington OIC has issued a technical advisory reiterating state requirements that health insurance carriers must rate member employers of association health plans without regard to the health histories of individual employers. Rates must be based on the health of the entire association group, the agency says.

The OIC says around 7% of AHPs in the state are in violation of a state law prohibiting plans to use health information to set rates for individual member employers.

Based on a survey conducted earlier this year, roughly a quarter of the 248,000 enrollees in AHPs in Washington state are in plans that use the health information of the member employer to determine rates, according to the agency.