Internal White House documents reveal that 51% of employers may have to relinquish their current health care coverage by 2013 due to ObamaCare. That numbers soars to 66% for small-business employers.
The documents — product of a joint project of the Labor Department, the Health and Human Services Department and the IRS — examine the effects new regulations would have on existing, or “grandfathered,” employer-based health care plans.
It's pretty easy to see why. Regulations kick in for these reasons, and there are others:
Under interim regulations, current employer-based coverage would not be grandfathered and hence subject to the health care laws’ consumer provisions if:
* The plan eliminates benefits related to diagnosis or treatment of a particular condition.
* The plan increases the percentage of a cost-sharing requirement (such as co-insurance) above the level at which it was on March 23, 2010.
* The plan increases the fixed amount of cost sharing such as deductibles or out-of-pocket limits by a total percentage measured from March 23, 2010, that is more than the sum of medical inflation plus 15 percentage points.
* The plan increases co-payments as a total percentage measured from March 23, 2010, that is more than the sum of medical inflation plus 15 percentage points or medical inflation plus $5.
* The employer’s share of the premium decreases more than 5 percentage points below what the share was on March 23, 2010.
Health care plans operate at very low profit margins. These requirements pretty much guarantee that most plans will have the choice of operating at a loss or going out of business, unless the medical providers are willing to take a haircut. Ask the nurses who went on strike this week how they'd like that.