Tag: grandfathered plan

Question:  If an employer discontinues a PPO, which is part of a grandfathered plan made up of two PPOs and an HDHP, will the entire plan lose the grandfathered status? Answer: The Affordable Care Act (federal health care reform) specifies that a health plan is a grandfathered plan if (a) it was in existence on…

Question: We have a group health plan (grandfathered) that has both union (covered by a collective bargaining agreement [CBA]) and non-union employees covered under the group health plan.  When the union contract came up for renewal last year, the union and company actually negotiated a 25% decrease in the employer contribution and an increase in the…

Question:  Would implementing a smoker surcharge cause a plan to lose its grandfathered status? Answer: The portion of the Affordable Care Act’s grandfathering provision requires that the plans cannot significantly lower employer contributions. Grandfathered plans cannot decrease the percent of premiums the employer pays by more than 5 percentage points (for example, decrease their own…