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Less Than 20% Of Employer Plans Still Grandfathered


  04:48:36 pm, by MedBen5   , 185 words,  
Categories: News, Health Plan Management

Less Than 20% Of Employer Plans Still Grandfathered

Fewer health plans have retained their grandfathered status since the passage of the Affordable Care Act, the Society for Human Resource Management (SHRM) reports.

Less than one out of five employers currently offer at least one plan that is excempt from specific health care requirements, such as fully-covered preventive care. In contrast, 58% of employers offered a grandfathered plan just one year ago.

The ACA requires nongrandfathered plans to provide no-cost coverage for gender- and age-appropriate preventive services, including Pap smears, routine mammograms and colorectal cancer screenings. However, most employer already offered free preventive care prior to rhe ACA, so it’s likely the growing number of nongrandfathered plans reflect the need to provide benefits that meet the expanded benefits list under health care reform.

Conversely, some employers are also scaling back certain benefits to avoid paying the so-called “Cadillac tax", which will be levied on plans that pay more than $10,200 for individual coverage and $27,500 for family coverage. Plans that have a zero deductible, or a low co-pay for a a primary care physician visit, could trigger this excise tax, which is scheduled to take effect in 2018.

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