My wife works for a company that has received one of the many many waivers to Obama’s health care law. This weekend she got a letter; it was sent to her even though we’re not enrolled in the Starbridge plan her company offers but since she could potentially enroll in the Starbridge plan the letter was sent.
Anyway, the second paragraph of the letter says:
“The Affordable Care Act prohibits health plans from applying arbitrary dollar limits for coverage for key benefits. This year, if a plan applies a dollar limit on the coverage it provides for key benefits in a year, that limit must be at least $750,000.”
The letter then lists the actual limits the Starbridge plan has, which were all less than $2000. The waiver was requested (and granted) because to go from a $2000 limit to a $750,000 limit the premiums would go up drastically. Now, my understanding is that in 2014 after the “Affordable Care Act” is fully implemented the waivers go away. So, what happens to all the people who are on the low cost (and low benefits) plans similar to this Starbridge plan? I thought Obama said that if you liked your current health care plan you would be able to keep it? Would one of the lefties explain to me how driving up premium rates helps make care more “affordable”?
If you like your plan, you can keep it, as long as the insurance company is still in business.
By design, ObamaCare will make it VERY difficult for insurance companies to stay in business, thus leaving ObamaCare as the only remaining option. Neat how that works, isn’t it?
Not political in any way, so not accepting the designation as “lefty” by answering this question. And this is prefaced by this is a very simplified explanation.
But, in 2014, the state health care exchanges are to be operational and those people who are now covered by the “mini-med” plans (with limits such as $2,000) would have the right and ability to purchase one of the plan’s offered through the exchange (one of the four levels - bronze, silver, gold, plantinum categorized based on the level of coverage offered). Depending on their financial situation, they may be entitled to a premium subsidy. If they get no coverage, then they have to pay a tax equal to the cost of the bronze coverage (i.e. if I am going to pay that amount anyway, might as well get the coverage) - the whole insurance mandate controversy.
If they get the premium subsidy and the employer does not offer “affordable” coverage, then the employer has to pay additional taxes.
Since there is no additional individual or employer taxes until 2014, the waiver is an acknowledgement that a “mini-med” plan, while really limited, is better than no coverage, and if required to comply with the 750,000 limit, the employer would simply drop it without consequence until 2014.
Since there is no additional individual or employer taxes until 2014, the waiver is an acknowledgement that a “mini-med” plan, while really limited, is better than no coverage, and if required to comply with the 750,000 limit, the employer would simply drop it without consequence until 2014.
…and they’ll drop it in 2014. That’s the point being made that Obama uh, distorted the reality that you won’t be keeping your plan, because Obamacare is designed so that your plan will not be available. Even Howard Dean recently admitted this would be the case; of course he looks at it as a positive.
I’ll also add, lots of companies have these low-cost low-benefit plans. The company my wife works for employs lots of low-wage call center employees. I think McDonald’s has the same type of plan for their employees.
So, those low cost plans are a way to provide some benefit to employees? Well, I’m sure those companies would simply pay the increased cost if they were forced to provide a higher benefit plan. I’m sure none of them would reduce all the employees to part time, removing all benefits. You forget, this administration is brilliant and can foresee all results of its actions.