Understanding the new ‘grandfathering’ rules — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

It was President Obama’s mantra during last year’s debate over passage of comprehensive health care reform: “If you like your health plan, you can keep it.”

Since enactment of the Patient Protection and Affordable Care Act in March, the administration has kept up the reassurances. Nothing in the new law, they say, will force individuals or employers that provide insurance benefits to change plans.

And it’s true that group health plans that were in effect when the health care reform law was signed can earn “grandfather” status. What does that mean?

“They only have to comply with some of the expansive group market reforms—not all of them. And that’s important,” says Lisa Horn, manager of health care policy for the Society for Human Resource Management.

But employers can lose grandfather status if they change insurance carriers or “substantially increase” out-of-pocket costs for employees.

Note: Premium changes are not a factor...(register to read more)

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