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Can GOP repeal grandfather limits? Not likely, but it's trying

Christian Schappel
by Christian Schappel
September 12, 2011
1 minute read
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House Republicans recently tasked three committees with writing legislation to repeal the healthcare reform law’s grandfathered plan restrictions.
Currently, for companies to hold on to their health plan’s grandfathered status — and avoid having to comply with several healthcare reform mandates — they are unable to pass much in the way of health plan costs on to their employees.
The general rule: If a plan increases co-payment levels or increases the percentage of premiums paid by participants by more than 5%, it’ll lose its grandfathered status — and that would mean having to meet new minimum medical loss ratio requirements and paying 100% of the cost for certain preventive services.
House Majority Leader Eric Cantor (R-VA) recently said the restrictions employers have to abide by to keep their plans’ grandfathered status will hurt wages and job growth.
So the House’s Energy and Commerce, Ways and Means, and Education and Workforce committees have been tabbed to create legislation to repeal those restrictions.
Looks like a long shot
Last year, a similar measure was shot down in the Democrat-controlled Senate.
And while a repeal proposal stands more of a chance in the Republican-dominated House, it’s all but guaranteed to be killed by a President Obama veto if it makes it to his desk.
So why do it?
Probably, because it keeps the wheels turning for the GOP’s main strategy: continuing the public debate over Obamacare, which the Republicans hope will erode voters’ support for Dems supporting the law.
The GOP has said all along it wants to make Democrats publicly vote to uphold the reform law’s mandates in hopes that will sway voters to its side by the 2012 elections, when Republicans hope to gain control of Congress and the White House.

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