You may start hearing the term “grandfathered plan” as we get closer to 2014 and the next phase of the Affordable Care Act (ACA).
As you begin to plan ahead, it is important that you understand what a grandfathered plan is. Here’s what you need to know:
What is a Grandfathered Health Plan?
A grandfathered health plan is one that was in effect prior to March 23, 2010. If a carrier has kept a group of plans grandfathered (no changes to benefits for the last three years) they are likely to keep that block of business active for the foreseeable future. A grandfathered plan is not subject to many of the changes required under the Affordable Care Act.
If my Plan is Grandfathered, should I keep it?
If you currently have a grandfathered plan, here are three reasons why you may want to keep that coverage:
- If you don’t need more benefits. If your current plan provides all the coverage you need, sticking with it may save you money since a newer, ACA-compliant plan may have additional benefits that you don’t care about or need.
- If your current plan offers more benefits. If your current plan provides robust benefits that meet your needs — for example more provider choices, prescription drug benefits, etc. — then you may want to consider keeping your current coverage.
- If you don’t want a price increase. Since grandfathered plans are not required to include some of the provisions of ACA, sticking with your current plan may your best chance at keeping your costs level.
*** UPDATE 2022 ***
If your income makes you eligible for a subsidy, then you might be better off with an Affordable Care Act compliant plan. Please reach out to us to review.
What should I do if I have a Grandfathered Plan?
Give Virginia Medical Plans a call so we can review your current coverage and discuss your goals.