Grandfathered Benefit Plans
Posted by Jamie Martens on Tue, Nov 16, 2010 @ 01:55 PM
You will now be able to change your insurance company and maintain the “grandfathered” status of your health plan. Although this ruling does not apply to individual market policy holders, it does apply to group plans. The ruling basically says that group health plans may shop for coverage at a lower cost in an attempt to maintain current benefit levels. Plans must however still abide by the rulings that apply to lifetime limits on coverage, dependent children, annual limits and policy rescission. The action is due to a concern by HHS, Labor and the Treasury that incumbent insurance carriers might attempt to use the “grandfathered” status as leverage for renewal underwriting.