Friday, April 8, 2016

Keeping Your Old Health Insurance Plan (AKA Transitional Relief)

Part of the Affordable Care Act (ACA) includes the termination of any transitional health insurance for individual and small businesses with 50 or fewer employees.   We have been fortunate that the deadline for this change has been extended again.  This termination will not occur until December 31, 2017.   
 
So, wondering what all of that means?  Here’s our best effort to make sense of it:
If you purchased group or individual health insurance before March 23, 2010 AND haven’t made any changes to that plan, you are on a “Grandfathered” plan.  You are exempt from all of this!  Go celebrate!
If you purchased individual health insurance after March 23, 2010 but before January 2014 AND haven’t made any changes to that plan, you are on a “Grandmothered” plan.

If you purchased group health insurance after March 23, 2010 but before January 2014 and have made no changes or only small changes, you are on a “Grandmothered” plan.
A Grandmothered Plan is the same as a Transitional plan.

Grandmothered = Transitional

Ok – we’ve got that part down.  Moving on to the big change:

The recent change means you can definitely keep your current plan until at least January 1, 2018. (Assuming things don’t change again…)
However on January 1, 2018 ALL individuals and small groups that have transitional plans will have to switch to an ACA plan.  This change will occur on January 1, 2018, NOT when you currently renew.  If you are an individual, you will need to go through the open enrollment process in November 2017.   Small businesses will need to meet with your broker before November to review your options.

Bottom line, on January 1, 2018 there is a very good chance that your rates will increase substantially.  (Don’t kill the messenger – we are just passing along the information.)