TightyRighty.net

… As long as you keep your current job. Since most of us have employer provided insurance, we have health insurance as long as we have a job, plus some period of COBRA coverage.  If you leave your job, you typically get new insurance coverage from your next employer. Under the provisions of H.B. 3200,  America`s Affordable Health Choices Act, your choice to keep existing insurance coverage is as follows (see page 16):

SEC. 102. PROTECTING THE CHOICE TO KEEP CURRENT COVERAGE. (a) GRANDFATHERED HEALTH INSURANCE COVERAGE DEFINED.—Subject to the succeeding provisions of this section, for purposes of establishing acceptable coverage under this division, the term ‘‘grandfathered health insurance coverage’’ means individual health insurance coverage that is offered and in force and effect before the first day of Y1 if the following conditions are met:

(1) LIMITATION ON NEW ENROLLMENT.— (A) IN GENERAL.—Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day of Y1.

What this legal mumbo-jumbo states is that you can keep your current insurance coverage as long as your current employer continues to offer it.  Once you change jobs, you are on the government plan because your new employer’s insurance carrier can not accept new people into their plan.

Additionally, Section 313 of this bill permits the employers to make a contribution of 8% of wages in lieu of providing “qualifying” coverage.  The government will then provide the coverage.  If you do the math, this will be the optimal solution for many companies.  In 2007, the median American household earned $50,233.  Let’s assume that amount is now $55,000 for inflation the last 2 years.  8% of this amount totals $4,400, or $367 per month.  My COBRA coverage from imc2 was approximately $1,150 per month, and while imc2 provides nice coverage, it is by no means a “gold plated” plan.  I would estimate that single coverage runs somewhere in the $500-700 per month range.

If it were you, would you choose $367 per month for the government plan or somewhere far north of that amount to provide private insurance?  I think most companies will do the math and Voila! – you will not be able to keep your current health insurance and your own doctor, etc.

Why would we want this?