Sunday, August 16, 2009

If you like your healthcare plan…

…you can keep your healthcare plan.  So says the President.  For the purposes of H. R. 32oo as introduced in the House, these plans are defined as grandfathered plans (Sec. 102(a)).

So, this means the Feds are not going to take over health care in this Country.  Or, does it really?

Section 102(a)(1)—LIMITATION ON NEW ENROLLMENT—has the provision in (A) that no new enrollments in such plans shall be made after the AAHC Act becomes law.

Further down, Section 102(c)—LIMITATION ON INDIVIDUAL HEALTH INSURANCE COVERAGE—subsection (1) has the provision that individual coverage may only be issued through the Federal Health Insurance Exchange.

The effect of limitation on new enrollments will be the pool of insured under those plans will shrink because of attrition due to a variety of reasons.  Eventually, those plans will become infeasible to maintain due to costs to the insured.  And, because of 102(c)(1), there will be no place to go except to Federally defined plans.

So, it is true:  If you like your plan, you can keep your plan.

What is not being said is your plan will eventually wither away and there will be no recourse but to go into the Federal defined plans.

Slick, huh?

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