New rules to be issued today for employer-sponsored health plans will apply to all plans, this New York Times story says. The goal is to prevent employers from small to large from cutting benefits—they risk losing some sweeteners employers won during the debate if they do.

There has been a lot of worry about whether health care reform would prompt small businesses to discontinue coverage and send their workers into the health exchanges, which will be available to people who do not have coverage for any number of reasons.

One of the biggest concerns during the health care reform debate was the question of whether people would be “forced” into new plans that they did not want.

If these new rules accomplish that goal, the anxiety level among the general public about this issue should be reduced.  It is unlikely that this message will get through until open enrollment period this fall. Right now, people are not thinking about their health insurance unless they have real worries.  Summer is here.

Independent survey data show that people report a fairly high satisfaction level with their own’ health plans while, at the same time, the health insurance industry is viewed with a great deal of skepticism.

• One goal of these new rules is to enable people to keep their insurance if they like it. This should be one of the most popular features if those public opinion polls reflected one of the public’s biggest concerns. In the campaign opposing health care reform, a lot of confusion resulted from “attack” ads.

• Outrage over health plans’ canceling coverage once a beneficiary becomes ill–called “recission“—is being dealt with. That will no longer be allowed.

• Outrage over lifetime caps on coverage are among the other protections these rules will provide to consumers.

The New York Times

“The White House on Monday will issue new rules that strongly discourage employers from cutting health insurance benefits or increasing the costs of coverage to employees, administration officials say. (Emphasis added)

“The rules limit the changes that employers can make if they want to be exempt from certain provisions of the health care law passed by Congress in March. Many employers want the exemption because it allows them to keep their existing health plans intact with a minimum of changes. More than 170 million Americans have employer-sponsored insurance. (Emphasis added)

“The administration said the rules would allow a smooth transition to a new, more competitive insurance market that works better for consumers. But in some respects, the rules appear to fall short of the sweeping commitments President Obama made while trying to reassure the public in the fight over health legislation. (Emphasis added)

“In issuing the rules, the administration said this was just one goal of the legislation, allowing people to “keep their current coverage if they like it.” It acknowledged that some people, especially those who work at smaller businesses, might face significant changes in the terms of their coverage, and it said they should be able to “reap the benefits of additional consumer protections.” (Emphasis added)

Source: New York Times, June 14, 2010