Obama: "If You Like The (Health) Plan You Are In, You Can Keep It" (Except If You Can't)
John C. Goodman blogs at The Independent Institute about that oft-repeated pledge by the President -- a pledge that seems to be crap for a majority of people. Here's why:
Your Employer May Be Forced to Switch to Another Plan
In general, if employers make very few changes to their current plan, that plan will be grandfathered. But most plans will be unable to qualify for grandfather status. A government memorandum makes the following predictions:*More than half of all employees with employer-provided health insurance will have to switch to a more expensive, more regulated plan, and the number may be as high as two-thirds.
*Among those who will be required to switch plans, as many as 80 percent are employees in small businesses.
*Within three years, more than 100 million people will be forced into a health plan more costly and more regulated than the one they have today.
*Moreover, grandfathering is only a temporary phenomenon. The memorandum suggests that eventually all plans will lose their grandfather status.
It's also possible that your employer will drop coverage altogether. (Of course, health care should have been untied from the workplace, since few people today stay in a job for more than a few years -- causing a health insurance mess for them when they leave...if they can leave.) Goodman continues:
Most employers will be required to offer health insurance or pay a fine. But since the fine will be as little as one-seventh the cost of the insurance, many employers--especially small employers--may drop their coverage. This will force you and other employees to go to a health insurance exchange for your health insurance. To a modest degree, this has already happened in Massachusetts, with a similar health reform law, and the reaction is likely to be more pronounced in other states.
There's even more Obamacare fun to come that he lays out at the link.