Gov Docs: Insurance Cancelled for Increases of $5.36 or More on Cheap Copayments

Pundit Press ^ | 11/8/13 | Aurelius

[rightistight]

According to the document “Group Health Plans and Health Insurance Coverage Relating to Status as a Grandfathered Health Plan Under the Patient Protection and Affordable Care Act,” hosted on http://webapps.dol.gov/, the amount of change in some people’s pockets could leave them without insurance.

While wordy and extremely long, the document provides several examples in which people can lose their insurance. Any increase in an insurance copay above the rate of “medical inflation” plus 15% leads to an insurance provider losing its “grandfathered” status. Normally, the rate was calculated from about 20 to 40% by the government. So, an increase from $200 to $300 a month would cause a provider to lose its status.

But the thing is, the 20-40% figure applies to extremely cheap insurance as well. In one example, an increase from $30 to $45, a mere fifteen dollars, causes an insurance provider to lose its grandfather status...

But what about even cheaper insurance? What if copays didn’t cost you a dime, then were increased? Well, the document covered that to. If you went from a copay of $0.00 to $5.36 or more, you would lose your insurance:

The increase that would cause a plan to cease to be a grandfathered health plan under paragraph (g)(1)(iv)(A) of this section is $5.36 ($5 x 0.0720 = $0.36; $0.36 + $5 = $5.36).

[Sacajaweau]

The premium for my Medicare supplement will go from $26.80 to $40.00 a month (increase of $13.20)beginning Jan 1st.

My COLA will be $14.22.

$1 a month...Wow!!

I have no prescription coverage. I'd have to use my food money.

[a fool in paradise]

President Obama said that the Cadillac coverage plans have to go because they encourage wasteful expenditure/procedures.

So if you had one and like it, you CAN’T keep it in Obama’s America.

[tbw2]

It looks like the wrote the law to make the grandfather clause essentially worthless.
Not even a provision for inflation in premiums and deductibles? Raise your rates, lose the plan?