As small business owners navigate the Affordable Care Act (ACA) they face an uphill battle. As a way to maintain current coverage and delay rate hikes, many small businesses have kept their non-ACA health insurance plan under a provision known as the "grandmothering."
health plans Grandmothered
Remember the phrase Obamacare If you like your plan, you can keep it? The term "Grandmothering" is used to describe individual policies and small non-ACA employers authorized under the administration Transitional Relief .
When the ACA was adopted in 2010, some existing policies were allowed to remain in place without ACA compliant; they were " grandfather " in. grandfathered plan not to adhere to many rules of ACA and can continue as long as certain provisions are not changed.
Grandmothered the health plans are different. They came about the end of 2013, when the Obama administration announced that if a State has allowed it, pre-ACA, non-grandfathered individual and small group plans may be renewed only once and could remain intact until 2014. This grace period is designed to give individuals and small employers time to continue on their (often cheaper) current insurance policies before proceeding to the ACA consistent coverage.
In March 2014, the prolonged administration of the transitional relief period, allowing States to allow planes grandmothered be renewed each year until October 1, 2016, and remain active until at September 30, 2017.
Currently, 36 states allow grandmothered political phase with dates ranging from 2015-2017 ( see the interactive map of Forbes ).
What awaits you if you offer a Grandmothered plane
If your company has a grandmothered plan, expiring in the next two years, you are probably already planning your renewal and bracing for a significant increase in rates.
As you know, the ACA plans use a different method of scoring. As such, most small businesses will see significant price increases. Of course, how much your rates go up will depend on several factors, including the demographics of politics and current employees
Related: FAQ - How are the health plans of Small Group Impacted by ACA.?
If your company is approaching a renewal of politics, begin planning now to understand your options. For example, work with your insurance advisor:
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Understand when your policy expires grandmothered. Remember, the availability of renewal varies by state and in some cases by the insurance company.
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Compare the cost and benefits of your current policy to ACA policy.
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Compare the cost and benefits of your current policy of individual policies. Often, small business employees are eligible for tax subsidies on premiums for plans purchased through the stock exchange. If you decide to transition employees to individual policies, the company can help with premiums health plan defined contribution .
Conclusion
Grandmothering health plans has allowed small businesses to keep non-ACA health plans compliance for a limited period of time. Companies that approach a policy renewal should begin planning now to understand the options for dealing with rising premiums provided.
What questions do you have about grandmothered health plans and small business health insurance options? Leave a comment below.
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