The Patient Protection and Affordable Care Act (PPACA), also known as the health care reform law, makes sweeping changes to health care coverage for both employers and individuals. The PPACA requires all U.S. citizens to have minimum essential coverage either through their employers or through individual coverage beginning on January 1, 2014. The PPACA requirers employers with more than 50 employees will have penalties for not providing affordable health car coverage. The PPACA makes some significant changes regarding health coverage that take effect for plan years, beginning after September 23, 2010.
The PPACA created new mandates that apply to either all plans or non-grandfathered plans. Grandfathered plans are those plans that were in existence on March 23, 2010. According to a Department of Labor fact sheet, to avoid losing grandfathered status, grandfathered plans:
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