On November 15, the Departments of Treasury, Labor, and Health and Human Services jointly announced an amendment to the original “grandfather” regulations that were published last June under the Patient Protection and Affordable Care Act (PPACA) concerning how employers can maintain grandfathered health plan status.
The amendment “allows all group health plans to switch insurance companies and shop for the same coverage at a lower cost while maintaining their grandfathered status, so long as the structure of the coverage doesn’t violate one of the other rules for maintaining grandfathered plan status.” See the U.S. Department of Health and Human Services announcement.
The purpose of the original grandfather regulation is to help people keep existing health plans that are working for them. This new amendment supports that goal by allowing employers to offer the same level of coverage through a new insurance company and remain grandfathered, as long as the change in insurance does not result in significant cost increases, a reduction in benefits, or other changes described in the original grandfather rule.
What this means to your company is that it is now possible to keep your grandfathered plans even though you might change insurance companies. Please remember that G&A Partners has a wholly owned subsidiary that is an independent insurance agency. Our agency was designed specifically to provide you with information and quotes from multiple insurance companies so you can select insurance companies and plan designs that provide you with the best options.