Government relaxes the reform of health care rules on employers

Government relaxes the reform of health care rules on employers -

The grandfather of plans created by the reform of health care has caused confusion among individuals and employers. Now, to make things easier, and perhaps more confusing, the government decided to amend the reform rules for employers to allow them to maintain their status grandfathered when changing health plans.

planes are acquired rights health insurance plans that were active before the reform of health care was adopted in March. But the law requires that companies that significantly change their rates or benefit levels to lose that status and adopt new benefits under the reform.

Why would a company want to keep their grandfathered status?

Employers want to keep the status of grandfathered because they don "t have to provide additional benefits provided by the reform of health care. These new benefits, free preventive care and allowing young adults to stay on their parents' plan until the age of 26, will increase Medicare costs.

Now, with the new changes to the original provisions of reform, small businesses can change their plans without losing their grandfathered status. While keeping the status - companies can not increase premiums by more than five percent, increase quotas by more than $ 5 or increase deductibles of more than 15 percent for employee plans .

Always the Department of Health and Human Services estimates that nearly 66 percent of small employers plans will lose their grandfathered status in 2013 and 45 percent of large enterprises will lose their reports The Wall Street Journal .

This is just a temporary solution until all group health insurance plans lose their status and offer additional benefits by 2014.

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