How Does a Health Care Plan Maintain “Grandfathered” Status?

Posted November 27, 2013

healthinsuranceBy Amanda M. Mills, CPA | Tax Manager

While the health care reform legislation dramatically changes health care insurance in the United States, many of the changes do not affect plans that maintain their “grandfathered” status. Grandfathered health plans are subject to only specified provisions of the Affordable Care Act (ACA).

Coverage under a grandfathered plan satisfies an individual’s requirement to have minimum essential coverage and as long as the plan maintains its grandfathered status.  This is also an important classification as it may also avoid some of the more onerous provisions of the new federal nondiscrimination rules of IRC Sec 105(h)(2). A brief summary of those rules can be found here ACA provision on discriminatory health and dental insurance plans. Read more.