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Even as reform pushes up benefit cost, employers will take steps to hold 2011 increase to 5.9%

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Topics: Employer-Sponsored Coverage | Health Care Reform | Legislation (National) | Spending

A survey by Mercer found that 53 percent of employers believe they will retain "grandfathered" status for all of their health insurance plans, 32 percent expect to lose “grandfathered” status for all of their health insurance plans, and 15 percent expect to lose the protected status for at least one but not all of their plans.  The national health care reform law allows health plans to obtain grandfathered status if they existed when the law took effect and do not significantly alter their coverage. 

Fromt the report:

The new health care reform law gives employers a choice: If they avoid making certain changes to their health plans – such as raising employee coinsurance requirements – their plans will be “grandfathered” and thus exempt from a number of new cost-sharing and coverage mandates. Interim regulations released in June estimated that between 67% and 85% of employer plans would retain grandfathered status in 2011, but a new Mercer survey of nearly 1,100 employers found that just 53% believe they are likely to retain grandfathered status for all their plans – a somewhat smaller percentage than the government’s lowest estimate.

Full Report: Even as reform pushes up benefit cost, employers will take steps to hold 2011 increase to 5.9% (HTML)exit disclaimer small icon 

Mercer. (2010). Even as reform pushes up benefit cost, employers will take steps to hold 2011 increase to 5.9%.


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