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US gives employers more leeway with health rule

U.S. employers offering health insurance to workers will not lose protected status under the new health care law if they decide to switch health care plan providers, U.S. administration officials said this week.

U.S. employers offering health insurance to workers will not lose protected status under the new health care law if they decide to switch health care plan providers, U.S. administration officials said this week.

At issue is President Barack Obama’s pledge that people can keep their current health care plan if they liked it and administration officials have said the protected status aims to minimize disruption in coverage.

Under the overhaul passed earlier this year, employers must adhere to certain rules to keep special “grandfathered” status that exempts them from imposing other provisions in the law such as an appeals process and mandatory preventive care.

Any plan that made significant changes to their employees’ coverage, such as reducing workers’ benefits, increasing costs or changing health insurance carriers would lose protection.

 
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