NEWS: Cassidy Bill Will Help Shield Millions of Americans from Next Wave of Plan Cancellations Caused By Obamacare #BrokenPromise
House Energy and Commerce Committee Member Rep. Bill Cassidy, M.D. (R-LA) on Monday introduced H.R. 3522, the Employee Health Care Protection Act. The legislation would allow health insurance plans currently available on the group market to continue to be offered, protecting employees from President Obama’s often-repeated and now-broken promise that those who like their health care coverage can keep it, “no matter what.” Although the White House was forced to scramble when cancellation notices began arriving in millions of mailboxes across the country, when announcing his “fix,” President Obama repeated, “Keep in mind the individual market accounts for 5 percent of the population. So when I said you can keep your health care, I’m looking at folks who’ve got employer-based health care; I’m looking at folks who’ve got Medicare and Medicaid – and that accounts for the vast majority of Americans.” But as the new analysis reported below shows, this is just another promise waiting to be broken.
November 20, 2013
Second Wave of Health Plan Cancellations Looms
A new and independent analysis of ObamaCare warns of a ticking time bomb, predicting a second wave of 50 million to 100 million insurance policy cancellations next fall -- right before the mid-term elections.
The next round of cancellations and premium hikes is expected to hit employees, particularly of small businesses. While the administration has tried to downplay the cancellation notices hitting policyholders on the individual market by noting they represent a relatively small fraction of the population, the swath of people who will be affected by the shake-up in employer-sponsored coverage will be much broader.
An analysis by the American Enterprise Institute, a conservative think tank, shows the administration anticipates half to two-thirds of small businesses would have policies canceled or be compelled to send workers onto the ObamaCare exchanges. They predict up to 100 million small and large business policies could be cancelled next year.
"The impact I'm mostly worried about is on small young, entrepreneurial firms that will suddenly face much higher health insurance premiums if they want to offer health insurance to their employees," said AEI resident scholar Stan Veuger. "I think for a lot of other businesses ... they can just send their employees to the exchanges or offer them a fixed subsidy every month to buy health insurance themselves."
Under the health care law, businesses with fewer than 50 workers do not have to provide health coverage. But if they do, the policies will still have to meet the benefit standards set by ObamaCare.
As reported by AEI's Scott Gottlieb, some businesses got around this by renewing their policies before the end of 2013. But the relief is temporary, and they are expected to have to offer in-compliance plans for 2015. According to Gottlieb, that means beginning in October 2014 the cancellation notices will start to go out.
Then, businesses will have to either find a new plan -- which could be considerably more expensive -- or send workers onto the ObamaCare exchanges.
For workers, their experience could mirror that of the 5 million or so on the individual market who already received cancellation notices because their plans did not meet new standards under the Affordable Care Act. …
Read the complete story online here.