Looks like AHIP has decided to throw in the towel in regards to complying with the regulations saying they'll agree to the regulations.

Unfortunately the document is blocked by the Journal's "pay-for" section.

Here's what they released:

Insurers said they would comply with regulations the government issues requiring them to cover children with pre-existing conditions, after a dispute with lawmakers over interpretation of the new health-care legislation. The Obama administration has made near-immediate coverage for sick children a priority in its health-care overhaul. But shortly after the bill's passage last week, insurers contended that the law didn't require them to accept sick children until 2014.

This is after HHS Secretary gave them a warning shot, that should they fail to comply with these regulations, they don't get access to that group of 40 million uninsured Americans.

Sebelius to Insurers: You lost

Kathleen Sebelius warned the insurance industry Monday not to look for loopholes in health care legislation and informed it that she will be writing regulations to ensure that the industry covers children with preexisting conditions, which some insurers insist is not a requirement of the law. "The American people debated and discussed health insurance reform for more than a year. Congress and the President have acted. Now is not the time to search for non-existent loopholes that preserve a broken system," writes Sebelius, the Health and Human Services Secretary. The letter was sent to top insurance lobbyist Karen Ignagni on Monday and provided to HuffPost by a third party.

I'll update when more information is located on the article.