I subscribe to the HHS updates because of my job. I work in the marketing department of a Las Vegas Insurance Brokerage, so I need to make sure we are effectively communicating with our clients.
I got this today from HHS:
Yes, You Can Keep Your Health Plan
Posted May 19, 2010
By Stephanie Cutter, Assistant to the President for Special Projects
The Wall Street Journal published an op-ed today charging that the Affordable Care Act will prevent people from keeping their current health plan and limit their choices. However, this ignores the realities of health reform.
You can read the full Blog Post here, and you can read the WSJ Op-ed here – I Posed on the WSJ.com forum and below is my response:
Good Points – however, the biggest issue with the “Grandfathered” plans and why you will not be able to keep them (at least for very long) is:
HR 3590 requires that Individual and Small Employer Qualified Health Plans (those offered through the exchanges) and Grandfathered plans to be in two separate risk pools (this was NOT changed by the reconciliation bill). (See page 153 of HR3590 and start reading at line 24)
Ok, so what does this mean?
In order for insurance (no matter what kind) to stay affordable, the risk(s) of the insured are pooled into a group. The way for premiums to stay somewhat “level” is to continuously add new insured(s) into the risk pool.
By legislating that the risk of the Grandfathered plans and the New Qualified plans must be pooled separately, this administration has effectively destroyed the Risk Pool of the Grandfathered plans.
Side Note: A Grandfathered plans are those plans purchased prior to March 23rd, 2010 and in order to stay a grandfathered plan, the only thing that can change is the rate. If there are any benefit changes – it is no longer considered Grandfathered – hence, no longer a “Qualified Plan”
Bottom Line: Because the Grandfathered plans will no longer be able to be sold, their risk(s) will rise disproportionately (people will change plans between now and 2014) to the plans sold through the exchanges – so quite honestly, the 1/2 truth of “if you like your health plan, you can keep it” will only work as long as you can afford to pay the premiums. The Grandfathered plans will be dead; can’t sell new ones, can’t afford to pay the premiums – so really, you will not be able to keep your health plan – at least not for very long.
Sorry folks – you will not be able to keep your health plan – at least not for very long!!!!
what is the difference between health insurance and a health plan?
Comment by appendicitis symptoms — June 16, 2010 @ 10:53 pm
Health Insurance is the “umbrella” name for all Health Plans – your health plan would be defined by the certificate of coverage you received when you became insured by the health insurance carrier
Comment by echoing911 — June 28, 2010 @ 9:33 am