Small business owners can expect a lot of changes coming down the pike due to the passage of health reform. One big question business owners keep asking is if they will be able to keep the health insurance plan they currently have, if they like it. The Administration and Congress frequently assured Americans, especially business owners, during the reform debate that yes, you can keep the coverage you have. To follow up on this promise, the Department of Health & Human Services recently issues new regulations on "grandfathered" health plans. "Grandfathered" is a term that refers to existing health insurance plans that you, your family, your business and/or your employees are currently enrolled in that you may like to keep once new health insurance rules kick in over the next few years. Even though the regulations surrounding "grandfathered" plans will allow you to keep your current insurance, there will be required changes to your plan: -- Insurance companies must remove both lifetime limits on coverage as well as annual limits on coverage for all plans; -- If you are the parent of a young adult under 26 years old, your insurance provider must now allow you the option of extending coverage to your dependent. -- Should you get sick or if you made a mistake on your insurance application, insurance carriers are no longer able to drop or rescind your coverage on these grounds. While these benefits may sound appealing, keeping your health insurance plan does have its limitations. To maintain your "grandfathered" status and keep your existing coverage, you must abide by the following rules: • You cannot reduce the benefits you have in your plan or the coverage you offer employees. For example, you could not adjust coverage to stop covering a condition or a necessary treatment for that condition. • You cannot change insurance carriers. • You can only make minimal adjustments to your deductible or co-pays. In one year you can adjust your deductible no more than 4% to 5% to address medical inflation. For co-pays or cost-sharing with employees, a business owner cannot make more than a $5 increase or a percentage increase equal to medical inflation plus 15 percentage points in a calendar year. For more details, visit: http://www.healthreform.gov/newsroom/keeping_the_health_plan_you_have.html
To download the full survey results,
click here: NASE Monthly Poll- August 2010 Results- Grandfathered Status Rules NASE Monthly Poll August 2010 Results "Grandfathered" Status of Health Plans
Sample Responses:
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Courtesy of NASE.org https://www.nase.org/about-us/media-relations/nase-in-the-news/2010/08/18/Can_You_Keep_Your_Health_Plan_Once_the_Health_Reform_Law_Kicks_In