Team Obama Mid-range Estimate Says 51% Of Employer Health Plans Will Be Cancelled

You know how I’ve been mentioning that the individual market health insurance cancellations are just the beginning? That we’ll start seeing plans offered through companies being cancelled? Well, I’m not the only one who’s saying this (via Ace)

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(Forbes) Section 1251 of the Affordable Care Act contains what’s called a “grandfather” provision that, in theory, allows people to keep their existing plans if they like them. But subsequent regulations from the Obama administration interpreted that provision so narrowly as to prevent most plans from gaining this protection.

The Departments’ mid-range estimate is that 66 percent of small employer plans and 45 percent of large employer plans will relinquish their grandfather status by the end of 2013,” wrote the administration on page 34,552 of the Register. All in all, more than half of employer-sponsored plans will lose their “grandfather status” and get canceled. According to the Congressional Budget Office, 156 million Americans–more than half the population–was covered by employer-sponsored insurance in 2013.

Old and busted: “If you like you’re plan, you can keep your plan. Period.” New hotness: “It may be good enough for you, but it’s not good enough for Obama”. The article is mostly in context of Typical Baghdad Bob spin from Jay Carney, who lies as well as his boss. But, wait, it gets better!

Another 25 million people, according to the CBO, have “nongroup and other” forms of insurance; that is to say, they participate in the market for individually-purchased insurance. In this market, the administration projected that “40 to 67 percent” of individually-purchased plans would lose their Obamacare-sanctioned “grandfather status” and become illegal, solely due to the fact that there is a high turnover of participants and insurance arrangements in this market.

How many people are exposed to these problems? 60 percent of Americans have private-sector health insurance–precisely the number that Jay Carney dismissed. As to the number of people facing cancellations, 51 percent of the employer-based market plus 53.5 percent of the non-group market (the middle of the administration’s range) amounts to 93 million Americans.

So, there you go: the mid-range estimate from team Obama is that 93 million Americans will lose their plans. Will the new plans be better? That depends upon your definition of “better”. If you think paying higher premiums and deductibles for a small network while getting free condoms and free checkups is “better”, you must be a low information voter with an Obama sticker on car.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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