It’s more important now than ever before to help your clients understand health care reform. Here, we’ll help you understand grandfathering: what it means, and three reasons why your clients would keep a grandfathered health plan.
What is a grandfathered health plan?
A grandfathered health plan is a plan that was in effect before March 23, 2010. It isn’t subject to many of health care reform’s changes.
Three reasons to stay grandfathered
1. Clients may not need more benefits. Health care reform requires additional benefits that your clients might not need. By staying on their current plan, they could save money and control costs over time. However, this is not a guarantee that rates will be lower in the future.
2. Clients’ current plans may offer more benefits. Right now, your clients could have more provider choices, prescription drug benefits that work well for them, and more. Your clients might want to stay on their health plans if they’re happy with their current benefits. If your clients' current plan suits their needs, they don't have to change his or her plan.
3. Changes could increase costs. Because many health care reform provisions do not apply to grandfathered plans, they may not be affected by changes that could increase clients’ premiums, deductibles or their share of the costs.
What happens to your client on an individual grandfathered plan?
As of today, we don’t know how new rates on and off the exchange will affect your clients. Plan designs and prices will be available in October, so your clients will want to understand all of their options, including whether or not they want to stay on their grandfathered plan.
For more information, see this member flier.
What happens with a large business grandfathered plan?
Grandfathering works a bit differently for large businesses. Some companies can make changes to benefits if they’ve already grandfathered a plan. Keep in mind, some standard plans might retire, so a grandfathered version wouldn’t be available.
To learn more about grandfathered group plans, download our grandfathering fact sheet.
To learn about other health care reform topics, checkout the timeline and FAQs on our health care reform website.