Grandfathered Plans

Employer insurance plans that were in place on March 23, 2010 are referred to as “grandfathered plans.” These plans are subject to some of the new rules resulting from the health reform law, but exempt from others. In order to maintain its grandfathered status, an insurance plan cannot reduce or eliminate benefits to treat particular conditions, increase employee cost-sharing (such as deductibles, coinsurance, and co-payments) above certain thresholds, reduce the employer share of the premium cost, or change insurers. Once a plan loses its grandfathered status, it will have to comply with all the new rules.

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