Unlike the Upton proposal in the House, Sen. Landrieu’s legislation would NOT allow new people to sign up for these grandfathered plans next year. Insurers would be required to continue these plans ONLY for people who already are on them and keep up with their payments. In addition, under Sen. Landrieu’s bill, insurers would be required to annually provide policyholders with information as to how their current plans fail to meet the new minimum coverage standards, such as laboratory services or hospitalization, as well as information on how they may be able to find better value coverage on the exchanges.
Many people may choose to sign up for plans on the exchanges once they have this information and know their options. But because no new people could sign up for these grandfathered plans, and over time grandfathered policyholders will likely seek better value and more comprehensive coverage, the number of grandfathered plans would decrease.