What are Grandmothered Health Plans – and Can You Keep Yours?

grandmothered plansLast year grandfathered plans were given a lot of attention during open enrollment. These plans and others that were in place, now called “grandmothered” plans were the backbone of the idea that “if you like your plan – you can keep it!” Little did we know how complicated that would become! But how do you know if you have a grandmothered health plan, and what does this mean to you?

What are Grandmothered Health Plans?

Health plans that were in place before March 23, 2010, when the Affordable Care Act (ACA) was signed into law, are known as grandfathered plans. Individuals with these plans were allowed to keep their plans instead of switching to an ACA plan. This saved many individuals from paying the higher cost of an ACA plan.

Anyone with a plan acquired after March 23, 2010 was told last year that their plans would be cancelled – well we all know how that went over! It was later decided that if you had a plan in effect as of October 1, 2013, you could indeed keep your plan – that is if your state’s insurance commissioner and your insurance carrier also agreed to do so. We now call these plans, “grandmothered health plans.” Renewals were initially permitted for one year, but some have since been extended to 2015 or 2016.

Should I Keep My Grandmothered Health Plan?

If you’re fortunate enough to have one of these treasured grandmothered health plans, your insurance provider should be contacting you within a few months to let you know if you’ll be able to renew your plan until 2015 or 2016, or if you need to make the switch to an ACA plan. If you receive notice that your plan is being cancelled, you should contact one of our advisors as soon as possible to begin looking at your health insurance options for 2015. Remember – there’s no cost for our services.

Grandmothered health plans as well as grandfathered plans usually have lower premiums than ACA plans – largely because they’re not required to provide the extensive benefits that make up an ACA plan. This usually means it may be in your best interest to keep your grandfathered or grandmothered health plan!

However, if you think you qualify for premium assistance, your best bet may be to make the switch to an ACA plan, as this could substantially lower your monthly premium. We helped numerous families obtain insurance in 2014, and with premium assistance, some were able to keep their premiums less than $100 per month.

Our ColoHealth advisors can help you with weighing your options and deciding which plan is best for you. You can contact us at 866-749-2045.

Do you have a grandfathered or grandmothered health plan? Are you unsure? What questions do you have about grandfathered or grandmothered health plans?

  Date posted: Thursday, August 28th, 2014
Category: Health Care Reform, Health Insurance

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