7 Things To Consider With Grandfathered Insurance Plans

large_2941655917With health care reform plan rules coming into effect January 1st, 2014, there’s no time to waste when negotiating new labor agreements.  With the complexity of the Patient Protection Affordable Care Act, waiting until the last minute to begin negotiations can have disastrous effects.  One big question negotiators will have about grandfathered plans is to relinquish or not to relinquish grandfathered status, according to HR Magazine.  In this blog, read about the details employees may care about most regarding their grandfathered health plans.

A grandfathered health insurance plan is a plan that was in effect on March 23rd, 2010 that had at least one enrollee.  Some rules that employees may care about most include:

  • Continued coverage of children until age 26.
  • No lifetime limits on “essential health benefits”
  • No rescissions or retroactive cancellation or discontinuation of coverage in the absence of fraud or material misrepresentation of facts.
  • Elimination of pre-existing conditions exclusions from coverage for children younger than 19.

Grandfathered plans offer some perks that may help lower costs for employers:

  • They have additional time to study the impact of changes on health care reform rules imposed on other plans.
  • Grandfathered plans are not required to cover children who are age 26 or younger if health care benefits are provided by another employer.
  • Coverage eligibility rules still apply, allowing better control of risk.

It’s better to start sooner rather than later when examining your company’s options and what the best middle ground is for you and your employees. 

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