Health Care Bait and SwitchJune 26th, 2010 by Lee Eldridge
One of the points I made all along during the health care reform debate is that the current plan leads us down the path to a single payer, government run health care system. President Obama understands that a government run solution would never have passed Congress, so they backdoored a plan that would eventually create a single payer system. How? By making sure that businesses would be put in a situation where they couldn’t afford to comply with the new regulations and increased costs of health care coverage. The plan was never intended to reduce health care costs, but to increase them.
When President Obama said that Americans would be allowed to keep their coverage, he lied.
Many large firms including AT&T, Verizon and John Deere, have already explained how they may have to drop health care coverage for their employees. A tax change created in the new law will cost these companies millions of dollars, and it may no longer be economically viable for these companies to continue to provide health care coverage. (See this story from CNN.com.)
But what came out in a recently leaked government document is even more disturbing. We had been promised that our health care coverage would be “grandfathered” in under the new law, allowing us to keep the policies currently offered by our employers. According to a joint project that is being prepared by the departments of Health and Human Services, Labor and the IRS, they have predicted that up to 51% of employers may have to relinquish their current health care coverage under the new law.
Why? Because most of these policies will lose their “grandfathered” status within the first few years.
The “midrange estimate is that 66% of small employer plans and 45% of large employer plans will relinquish their grandfathered status by the end of 2013,” according to the document. In the worst-case scenario, 69% of employers — 80% of smaller firms — would lose that status, exposing them to far more provisions under the new health law.
If a company makes even simple adjustments to their current plan, it is now considered a “new” plan and no longer subject to the “grandfathered” status. And all NEW plans must conform with the new government regulations, which will INCREASE the costs of the coverage. Just to give you some insight, 66% of small businesses and 47% of large businesses made a change in their health care plans last year that would have forfeited their grandfathered status. (See this story from IBD.)
So what do you think will happen when millions of Americans lose their health care coverage over the next few years? Don’t worry, the government will have a solution for us. It’s called government run health care.