Previously, one of the ways an employer group health plan could lose its grandfathered status was if the employer changed issuers – (i.e. switching from one insurance company to another). The original regulation only allowed self-funded plans to change third-party administrators without necessarily losing their grandfathered plan status. An amendment released on Monday, Nov. 15, 2010 allows all group health plans to switch insurance companies and shop for the same coverage at a lower cost and maintain their grandfather status, so long as the structure of the coverage doesn't violate one of the other rules for maintaining grandfathered plan status, such as significant cost increases or a reduction in benefits.
Health Reform Update: Grandfathered Rule Amended
Top