Wednesday, February 24, 2010

Obama Destroys Pledge to Allow Americans To Keep Their HC Plans

The Senate bill has a measure to protect so-called “grandfathered plans,” which would allow policy holders to maintain coverage in plans that may not abide by all of the requirements imposed on new individual plans offered on the government-run exchanges. But Obama’s new proposal changes all of that. Here’s how the White House explains the new provisions:

The Senate bill includes a “grandfather” policy that allows people who like their current coverage, to keep it. The President’s Proposal adds certain important consumer protections to these “grandfathered” plans. Within months of legislation being enacted, it requires plans to cover adult dependents up to age 26, prohibits rescissions, mandates that plans have a stronger appeals process, and requires State insurance authorities to conduct annual rate review, backed up by the oversight of the HHS Secretary. When the exchanges begin in 2014, the President’s Proposal adds new protections that prohibit all annual and lifetime limits, ban pre-existing condition exclusions, and prohibit discrimination in favor of highly compensated individuals. Beginning in 2018, the President’s Proposal requires “grandfathered” plans to cover proven preventive services with no cost sharing.

All of the new requirements proposed by Obama would increase premiums, and by definition, alter the composition of those insurance more

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