Report: Employer Plans Won't Be Grandfathered Either

Image: Report: Employer Plans Won't Be Grandfathered Either

Monday, 18 Nov 2013 10:57 PM

By Greg Richter

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Although President Barack Obama has been assuring people that it is only the 5 percent of Americans who buy health insurance on the individual market who are being forced to give up plans they like, a Justice Department court filing shows otherwise, National Review reports

"Even under the grandfathering provision, it is projected that . . . a majority of group health plans will have lost their grandfather status by the end of 2013," the filing reads. It is part of a lawsuit brought by Priests for Life, which seeks to avoid being forced to provide coverage that goes against its religious beliefs.

The brief was filed Oct. 17, weeks before Obama made claims that only individual policies were affected.

"This is part of the fraud," the article's author, Andrew C. McCarthy, said on Fox News Channel's "The Kelly File."  It shows the grandfather provision was "just a dog and pony show," he said.

Though the group plans would lose their grandfather status by the end of this year, the law does not take effect for them until one year later because Obama granted a one-year stay of the employer mandate.

That would mean people with employer-based plans could be getting cancellation notices about one month before the 2014 midterm elections.

McCarthy points to a Powerline Blog article  that notes a chart in the Federal Register of June 17, 2010, that predicted 39 percent to 69 percent of employer-based plans would lose their grandfather status by the end of 2013. For small-business employers, the number was between 49 percent and 80 percent.

"During all these years, while Obama was repeatedly assuring Americans, 'If you like your health-insurance plan, you can keep your health-insurance plan,' he actually expected as many as seven out of every 10 Americans covered by employer plans to lose their coverage," McCarthy writes.

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