On November 15, 2010, the Departments of Health and Human Services, Labor and the Treasury made an amendment to current Grandfathering rules. Previously, one of the ways an employer group health plan could lose its grandfather status was if the employer changed issuers – switching from one insurance company to another.
The amendment allows employers to switch insurance companies and shop for the same coverage at a lower cost while maintaining their grandfathered status, so long as the structure of the coverage doesn’t violate one of the other rules for maintaining grandfathered plan status.
What does this mean for you?
You will now have greater leeway to compare and purchase plans from carriers other than the one in force without losing grandfathered status.
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