They don't want a massive shift of cost to the employee, but they have no problem bankrupting the business? Are they unfamiliar with who actually creates the jobs in this country? Legislation like this will only serve to freeze hiring and wages even more than they are already, forcing many businesses to shut down entire segments that will no longer be cost effective to keep open. There is nothing like threatening the wage creators right in the middle of the highest unemployment and economic turmoil in recent history. Yeah, that outta make things better.
The White House on Monday outlined broad new rules designed to prevent employers from dropping health insurance benefits for their workers or shifting huge new costs onto them.
The regulations empower the administration to revoke the so-called grandfather status of businesses that shift “significant” new burdens onto employees — a considerable penalty that would subject those plans to all the consumer protections in the Democrats’ new healthcare reform law.
The new rules say that employers can make “routine and modest” adjustments to their premium, deductible and co-pay requirements, Sebelius said, but “significant” cost hikes or benefit cuts would cost them their exempted status. The goal is to ensure that grandfathered plans “don’t use this additional flexibility to take advantage of their customers,” she said.
“We don’t want a massive shift of cost to employees,” Sebelius said.
Another noteworthy consequence of this move? There is no way that many insurance plans will not loose their "exempt status" because of these new regulations. This will absolutely result in a massive shift of employees to the government option. Keep what you have? Right.
Please do not call this an unintended consequence-they know exactly what they are doing.