Bombshell: Admin said over half of employer health plans will be canceled
According to Forbes writer Avik Roy, “Obamacare’s disruption of the existing health insurance market—a disruption codified in law, and known to the administration—is only just beginning. And it’s far broader than recent media coverage has implied.”
In a bombshell report posted early this morning, Roy links to analysis published in the Federal Register in 2010 that backs up his claim:
“The Departments’ mid-range estimate is that 66 percent of small employer plans and 45 percent of large employer plans will relinquish their grandfather status by the end of 2013,” wrote the administration on page 34552. All in all, more than half of employer-sponsored plans will lose their “grandfather status” and get canceled. According to the Congressional Budget Office, 156 million Americans—more than half the population—was covered by employer-sponsored insurance in 2013.
In other words, the cancellations that heretofore have been limited to the individual market will ultimately spread to the employer market as well. This may explain the administration’s decision to delay the employer mandate by one year.
This seems like something worth asking the White House about, huh?