June 14,2010

Baucus Comment on New Rule Regarding "Grandfathered" Health Plans

MEMORANDUM 

June 14, 2010 

To: Reporters and Editors

From: Scott Mulhauser and Erin Shields for Senate Finance Committee Chairman Max Baucus (D-Mont.)

Re: Baucus Comment on New Rule Regarding “Grandfathered” Health Plans

Senate Finance Committee Chairman Max Baucus (D-Mont.) issued the following comment today after the Departments of Health and Human Services, Labor and Treasury issued a new regulation regarding “grandfathered” health plans.  Baucus was instrumental in passing the new health reform law, known as the Affordable Care Act, which allows Americans who like what they have to keep it.  The new regulations issued today provided further guidance for plans already in place on the date the Affordable Care Act was passed.  From Chairman Baucus:

“Health care reform puts the focus of health insurance where it belongs – on consumers.  For nearly two years, the national discussion on what this country wants from our health insurance system has proven that stability and affordability are among the highest priorities for workers and their families, and those are two principles today’s rule helps to address.  This rule allows individuals and families to keep their existing plans if they like them, and protects consumers with important benefits we included in the new health reform law.  And, the new rule provides flexibility to employers who offer quality insurance to make routine changes and still continue offering the same coverage to employees.  But this new rule also protects employees by discouraging employers from using health reform as an excuse to cut their benefits or increase their cost sharing.  This rule strikes the right balance between protecting consumers and offering the flexibility employers need.”

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