ABC Sept. 28 sent a letter supporting S.J. Res. 39, a resolution introduced by Sen. Michael Enzi (R-Wyo.) that would overturn the recently issued interim final rule relating to grandfathered health plans under the Patient Protection and Affordable Care Act (PPACA). The Senate Sept. 28 voted 40-59 to reject this resolution.
In the letter, ABC echoed the concerns it included in comments submitted Aug. 16, as part of the Small Business Coalition for Affordable Healthcare, noting that the grandfather rule is overly restrictive and would increase the costs and burdens on small businesses. The coalition pointed out that neither PPACA nor the grandfather rule address the core problem facing small businesses; the rising costs of health care. Instead, the rule strips small employers of the ability to exercise flexibility in adjusting to cost increases in order to maintain their current plan.
“The grandfather rule demonstrates a fundamental failure of the federal government to understand the needs of small businesses,” the letter said. “It is unfortunate that the federal government continues to fail to provide employers and their employees with health care solutions that are practical or affordable.”
Under PPACA, “grandfathered plans” are certain group health plans and health insurance coverage which existed on March 23. Grandfathered plans are required to comply with some, but not all, of the health reforms contained in PPACA.