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House Panels to Consider Repeal of Grandfather Rules for Health Care Plans

August 31, 2011
Related Topics: Health Care Reform, Finance/Taxes, Health Care Costs, Benefit Design and Communication, Health and Wellness, Legal, Latest News

House Republican leaders on Aug. 29 said several House committees will develop legislation to repeal the health care reform law’s grandfather plan rules.

Failure to follow those rules will result in health care plans losing an exemption from complying with several health care reform law requirements, such as providing full coverage for preventive services.

Under those rules, to win grandfathered status, a health care plan, among other things, can’t ever increase coinsurance requirements or boost the percentage of the premium paid by enrollees by more than 5 percentage points.

House Majority Leader Eric Cantor, R-Virginia, said in a memorandum sent to House Republicans that employers losing grandfathered status for their health care plans will face higher costs, “negatively affecting wages and job growth.”

Cantor said the House Education and Labor, Energy and Commerce and Ways and Means committees, will “soon” develop legislation “to repeal these Obamacare restrictions.”

Last year, the Senate defeated a proposal by Sen. Mike Enzi, R-Wyoming, that would have effectively nullified the grandfather rules.  

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, email


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