Via Washington Examiner:
President Obama’s team at the Department of Health and Human Services has a plan to prevent insurance companies from sending out politically toxic cancellation notices by making it easier for companies to modify existing plans without officially canceling them.
HHS unveiled the idea late Friday. “We propose that a modification made solely pursuant to applicable Federal or State law would be considered a modification of coverage rather than a product withdrawal,” the draft regulation states. “These modifications could include changes required to comply with Affordable Care Act standards (such as elimination of a prohibited annual limit) and changes permitted based on updated standards (such as increasing an annual limitation on cost sharing based on the annual increase in the limit permitted as a result of the application of the premium adjustment percentage).”
The law allowed plans that were in effect when President Obama signed Obamacare to be “grandfathered” into the new system, but HHS regulations made it very difficult to retain that grandfathered status.