Report: New rules could be issued on "grandfathered" health plansNews added by ProWEB Media on June 16, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

Draft regulations that are being developed by the Obama administration indicate that more than half of employer health care plans could lose their grandfathered status and be required to comply with the recent health overhaul bill, according to The Wall Street Journal.

If the report is true, it could spark new debate among opponents of the health care bill, as Obama had said that the under the overhaul, Americans who liked their insurance coverage would be able to keep it.

According to the report, the new regulations would "limit the changes that employers can make if they want to be exempt from certain provisions of the health care law passed by Congress in March. Many employers want the exemption because it allows them to keep their existing health plans intact with a minimum of changes. More than 170 million Americans have employer-sponsored insurance."

Plans will reportedly lose their grandfathered status if they increase employees' costs by more than the rate of medical inflation plus 15 percent. The grandfathered status means that plans are not required to fulfill criteria such as meeting "essential health benefits" to be mandated by the government. Even grandfathered plans would need to meet other requirements, such as prohibiting the cancellation of policies when a person gets sick, the report said.
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