Grandfathering – Don’t Let it Confuse You To Death!

Health Care Reform over the next two years will be taking “baby steps”, at least for now. The major changes are scheduled for 2013 and 2014.

One of the provisions/option points was on September 23, 2010. There is an option to Grandfather or not to Grandfather your plans. The short story is, don’t worry about it and there is nothing you need to do. The insurance companies will be making this decision for you and the decision will be to not Grandfather. And that is a good thing.

What is Grandfathering?

1. First off, it only applies to very large groups for the most part (those that can customize their plans and provisions), which usually means groups with 500 or more employees.

2. For groups choosing Grandfathering, it allows them to bypass a few relatively minor adjustments to their plans for about a year or two. If a group has a choice and chooses Grandfathering they will delay when certain improvements to their medical benefits are made. These are improvements you and your employees both want (better payment for preventive services and removal of dollar caps for many benefit classes, now grouped together as “Essential Benefits”). These improvements might add about 1%, +/- to your premium.

3. For groups choosing Grandfathering, they will be subject to increased reporting and documentation requirements, and if your business is like most businesses these days, you and your employees have enough to do already.

Tell Us What You Think
Tell us what you think. Is your company trying to get Grand Fathered status or are they moving on and making the change?

CAREY Benefit Associates and Chase Carey has been helping people and employers for more than 20 years to reduce the cost and the persistence of illness. Please give us a call Just give us a call at 770.751.6460. You want your benefits to operate seamlessly in the background, providing good value but no distraction. And we want the same thing for you and your business.

We help businesses and individuals save up to 60% on their insurance and benefit costs. Have you gotten a recent rate increase or would like to see if you can save on your health and life insurance costs? Businesses can contact us at and individuals can run rates using our industry leading Rate Shopping Cart at

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