Grandmothering Health Care Coverage

01 Aug Grandmothering Health Care Coverage

As you may know, the grandfathering provision of the Affordable Care Act (ACA) provided some companies with fewer than 50 employees with the ability to renew their prior, non-ACA health insurance.  As many companies faced increased insurance rates under ACA plans, this was a particularly appealing option.

Unfortunately, like many grandfathers, this grandfather was very strict.  A company was only able to grandfather their prior coverage if the plan was in effect before March 23, 2010 – the date when the ACA was signed into law.   In addition, the plan must have undergone little to no changes in the intervening years.  For example, if a company significantly increased the copay amount on their employees’ plans, or if they significantly increased the coinsurance amount, the plan could not be grandfathered.

American Gothic, by Grant DeVolson Wood. Image courtesy www.wikimedia.org

Fortunately, grandmothers are often kinder, gentler… and a bit more flexible.

Thus enters the “grandmothering” provision of the Affordable Care Act.

For companies with fewer than 50 employees, grandmothering health care plans allows a more flexible health care renewal option.  Plans that were in effect on October 1, 2013 can now be extended through October, 2016, as long as they are renewed by October 1, 2014.

The final decision as to whether to offer grandmothering of health care coverage was left to the individual states and insurance companies.  Indiana and Kentucky have both allowed for grandmothering, and Anthem has chosen to participate as well.  Click here for a Forbes article which includes an interactive map of which states are offering this relief.

Many of our clients will benefit from this new provision of the Affordable Care Act, but it is important to act fast in order to renew by the October 1st deadline.  Call Exact Insure today to find out whether your company qualifies, and to determine whether you and your employees will benefit from this provision!