WASHINGTON (AP) - Over and over in the health care debate, President
Barack Obama said people who like their current coverage would be able to keep it.
But an early draft of an administration regulation estimates that many employers will be forced to make changes to their
health plans under the new law. In just three years, a majority of workers—51 percent—will be in plans subject to new federal requirements, according to the draft.
"What we are getting here is a clear indication that most plans will have to change," said
James Gelfand, health policy director for the
U.S. Chamber of Commerce. "From an employer's point of view that's a bad thing. These changes, whether or not they're good for consumers, are most certainly accompanied by a cost."
Senate
Republican Leader Mitch McConnell of
Kentucky said it showed that Obama's assurance that
Americans would be able to keep the plans they currently have was "a myth" all along.
http://www.breitbart.com/article.php?id=D9G993800&show_article=1
On January 1, 2011, insurers will be required to maintain an 80 percent medical loss ratio (MLR) in the individual market. This means that 80 percent of revenue from premiums must be spent on medical claims, not on administrative costs or profits.
The National Association of Insurance Commissioners recently held a teleconference on the MLR’s impact, as several insurers begin to consider exiting the individual market in certain states where meeting the new MLR requirement would be not be viable. Decision time is now, as insurers must give policyholders six months notice before terminating a contract.
According to
Dowling and Partners, an insurance research firm, major players such as Aetna, Assurant, Mega Life, and United Health are likely to bail out of the individual market in at least some states. As a result, 1 to 2 million Americans could lose their current coverage. So much for promises.
http://blog.heritage.org/tag/side-effects/