Earlier this year, in his “Can we lose health coverage? Yes we can” column, syndicated columnist Deroy Murdock made a point asserted in dozens if not hundreds of columns and reports during the hide-and-seek legistlative process that ultimately led to the passage of what is commonly known as ObamaCare: The President’s core promise relating to the statist health care legislation that ultimately became law in March — namely that “If you like your health care plan, you will be able to keep your health care plan. Period. No one will take it away. No matter what” — could not and would not be kept.In that column, Murdock quoted Cato Institute analyst Michael Cannon as follows:
“Obama’s definition of ‘meaningful’ coverage could eliminate the health plans that now cover as many as half of the 159 million Americans with employer-sponsored insurance, plus more than half of the roughly 18 million Americans in the individual market. … This could compel close to 90 million Americans to switch to more comprehensive health plans with higher premiums, whether they value the added coverage or not.”
In a late Friday afternoon blog post followed by a fuller early evening report, David Hogberg and Sean Higgins at Investors Business Daily confirmed that Obama’s never-credible core promise is on the brink of being shattered, and that the employer-related calculations by Cato’s Cannon were essentially correct (see graphic illustration by IBD above ):
Internal administration documents reveal that up to 51% of employers may have to relinquish their current health care coverage because of ObamaCare.
Small firms will be even likelier to lose existing plans.
The “midrange estimate is that 66% of small employer plans and 45% of large employer plans will relinquish their grandfathered status by the end of 2013,” according to the document.
In the worst-case scenario, 69% of employers — 80% of smaller firms — would lose that status, exposing them to far more provisions under the new health law.
…. The 83-page document, a joint project of the departments of Health and Human Services, Labor and the IRS, examines the effects that ObamaCare’s regulations would have on existing, or “grandfathered,” employer-based health care plans.
Draft copies of the document were reportedly leaked to House Republicans during the week and began circulating Friday morning. Rep. Bill Posey, R-Fla., posted it on his Web site Friday afternoon.
… In a statement, Posey said the document showed that the arguments in favor of ObamaCare were a “bait and switch.”
… (A White House) source conceded: “It is difficult to predict how plans and employers will behave in the coming years, but if plans make changes that negatively impact consumers, then they will lose their grandfather status.”
… In total, 66% of small businesses and 47% of large businesses made a change in their health care plans last year that would have forfeited their grandfathered status.
….The Associated Press has noticed the story too, but with the weakest of headlines: “Health overhaul to force changes in employer plans.” The content isn’t much better. Earth to AP reporter Ricardo Alonso-Zaldivar: ObamaCare, as predicted by so many during the previous year by experts most of the establishment press willfully ignored, will cause many employers to drop their insurance entirely.
…(read more)…