New Federal Rules On Changes In Health Benefits

On Monday, Kaiser Health News reported on the mixed reviews by business groups to new Obama administration rules limiting how much employers and insurers can change their health insurance plans – while remaining exempt from potentially costly new consumer protections.

Consumer groups praised the regulations, saying the rules would ensure that millions of Americans receive the full benefits of the new health-overhaul law.

Under the new law, existing or "grandfathered" health plans could be exempt from some provisions designed to protect consumers. Those provisions include, for example, a requirement that takes effect Sept. 23 barring plans from charging for immunizations, cancer screening and certain other preventive health services.

The rules, released Monday, spell out when plans would lose their grandfathered status, including if they make major increases in premiums, modest increases in co-payments or significantly cut benefits. The administration estimates that half of all employers, including two-thirds of small employers, could lose their grandfathered status by 2013.

Many employers pressed the administration for maximum flexibility, saying they didn’t want to have to comply with potentially expensive new requirements if they made modest changes in their health plans. Meanwhile, consumer groups, argued for tough rules so that millions of Americans wouldn’t be deprived of the protections.

 

See the full article from Kaiser Health News at http://www.kaiserhealthnews.org/Stories/2010/June/14/health-insurance-plans-grandfathered.aspx