Health care reform is slowly enveloping the health care system in the United States. People are concerned about what will happen to their medical coverage, and rightly so. President Obama has laid claim that if you like your current health plan, then you will be able to keep it. There is some truth to this, but for many who are currently insured, this may not be the case, for better or worse.

Insurance Headlines has a recent article that discusses how health reform will impact existing medical plans. Of course, the answer varies depending on who you ask. Republicans have one take, while Democrats have another. The truth lies someone between the two.

A great many people get their current health plan through group health insurance plan coverage offered through their employer. Recently regulation has been issued regarding how employee-sponsored group health plan coverage will be affected by the health care reform, and it looks like that many who are covered under this type of coverage may not be able to continue with their current coverage. Fortunately, this might not be a bad thing.

The new regulations discuss what will and will not be a grandfathered health plan. In other words, what type of plans will be able to continue on after the health reform kicks in fully in 2014. There are only very limited changes allowed to existing plans in order for them to retain their grandfathered status. Also, if a company changes their employee health insurance plans or provider, which happens with great frequency, they will have to get a health reform approved plan.

Current major medical insurance plans change quite frequently in order to try and reduce the skyrocketing premiums. Changes such as increased deductibles and co-payments are quite common, all of which will make a health plan lose its grandfathered status. However, this might not be a bad thing as current major medical insurance plans definitely need an overhaul.

New, reform friendly health care plans might actually turn out to be a good thing. Plans will have to offer a basic set of coverages (essential benefits package) and will have full coverage for preventative care (what a concept!). Also there is wording that disallows health insurance providers from letting pre-existing conditions come into play. So you might actually want coverage from one of the new health plans come 2014, instead of your current coverage.

Time will play how the health care reform will play out. We still have a few years before the major changes take affect, and there is bound to be more regulations and clarifications to come.

Related posts:

1. Health Insurance Plan Premiums Increasing Faster For Those That Purchase Their Own Coverage
2. Individual Health Insurance Plan
3. How to Choose a Health Insurance Plan
4. Student Health Insurance Plan
5. Family Health Insurance Plan