The Future of Grandfathered Plans

GRANDFATHERING IN THE PPACA – Expect legislation that could relax the current rules determining when an existing health plan can maintain its grandfathered status. The Patient Protection and Affordable Care Act of 2010 (PPACA) grandfathering rules protect plans that existed prior to the implementation of PPACA from having to meet some benefits requirements, such as the new minimum loss ratio requirements, and mandates that plans offer certain preventive services without demanding any deductibles, co-pays, or other fees. However, grandfathered plans could lose their status if employers increase co-payment levels or the percentage of the premium paid by enrollees by more than 5%. Some warn that, unless the grandfathering rules are modified, up to 80% of health plans for small employers and up to 64% of large employer plans will lose their grandfathered status.
We have already seen a great deal of grandfathered policies move to the new healthcare reform compliant policies to save premiums and add additional benefits. We think this is a good thing.


2 Responses to The Future of Grandfathered Plans

  1. Bill says:

    If my individual policy is grandfathered, how can I move to a new healthcare reform qualified plan?

    • lnaservices says:

      Some insurance carriers will allow you to move to a new healthcare reform (HCR) plan by a simple request. Many others require a new application. My advice is to contact your broker to find out if your insurance company will allow you to move to an HCR plan and what is required.

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