That article has NOTHING to do with employer plans.
Thanks for playing.
Seriously? From the link:
So why is this happening right now?
Some -- or maybe even most -- of the plans offered on the individual insurance market right now don't meet certain requirements in the health-care law. They may not offer preventive care without co-payment, for example, or leave out coverage of maternity care, one of the health-care law's 10 essential benefits.
Some of these plans have stuck around for a little bit. The health law allowed plans that existed back in March 2010, when it became a law, to keep selling coverage. These are known as "grandfathered plans:" They don't meet the health law's requirements, but as long as they don't change much, insurers can keep offering them.
Insurance companies typically do like to change their insurance plans, making changes to cost-sharing or the benefits they offer. That means that grandfathered plans have disappeared. We don't have great data about how quickly this is happening in the individual market, but we do see it in this Kaiser Family Foundation survey of the employer market.
These cancellations are, essentially, a lot of grandfathered plans exiting the insurance marketplace. From an insurance company's vantage point, grandfathered plans are a bit of a dead end: They can't enroll new subscribers and are really constrained in their ability to tweak the benefit package or cost-sharing structure. There's not a whole lot of business sense, for a managed care company, in maintaining a health plan that doesn't meet the health law's new requirements.
Did you read the article or make an assumption?
The part I bolded is an erroneous conclusion.
"These cancellations are, essentially, a lot of grandfathered plans exiting the insurance marketplace." Wrong. Dead wrong.
All the chart shows is that less employers are grandfathered with each passing year.
And that is plain common sense. Any law which grandfathers some people will eventually have less and less people grandfathered as each year passes and people relinquish their status by going outside the law's parameters for maintaining that status.
It does not follow those same employers cancelled their insurance, and ten seconds of thinking would make this very obvious.
Look at the figure for 2011. It says there were 56% of employers who were grandfathered. At the end of 2013, it says there were 36%.
If the number of employers who were insuring their employees dropped from 56% to 36%, THAT WOULD BE BIG NEWS. It would be in all the papers. Limbaugh, Hannity, Beck, et al. would be going on and on and on about it.
But that has not happened.
So the bolded part is simply wrong. They lost their grandfather status, they did not leave the marketplace.