The Affordable Care Act was signed into law on March 23rd, 2010. A health plan in force prior to that date could be considered grandfathered (indefinitely) from full compliance with the ACA, under certain conditions.
Health plans purchased from March 23, 2010 through October 1, 2013 – when the Obama Administration announced “transitional relief” guidelines – are considered “grandmothered.”
“Grandmothered” individual and small group plans (i.e., those covering 2-50 employees) must comply with more ACA regulations than grandfathered plans, such as covering pre-existing conditions and preventive care with no cost sharing.
Transitional relief is set to sunset at the end of 2017. At that time, all individual and small group plans will have to be fully ACA compliant.
Where am I going with this?
If you are covered by a “grandmothered” health plan renewing (one more time) between now and year end, you can expect a larger than normal increase next year. Exactly how much will depend on the demographics of your group; e.g., younger groups will be hit hardest.
So, let’s start planning for next year. Next week, we’ll look at one possible remedy.