Employers Opting Out
Employes will face reduced choices and higher premiums next year because employers are opting-out of the “grandfather” provision.
This is the view of Scott Gottlieb, M.D., a resident fellow at the American Enterprise Institute, writing in today’s Washington Post.
Dr. Gottlieb said, “The administration estimated that up to 85% of employer-based plans would keep their benefits static to qualify for ‘grandfathering’ under the new rules, and avoid the full brunt of Obamacare’s expensive regulation. Now it looks like only about 50 percent of plans will qualify for grandfathering. What about the rest?
“They are opting for greater flexibility that comes with jettisoning their “grandfathered” status so that they can reduce benefits and raise co-pays to offset rising costs. The plans calculate that they can fully blunt the cost of Obamacare’s future rules by cutting benefits, and they’re right.”
Healthcare costs are like a giant balloon, squeeze it down on one side and it swells up on the other side.