Decision made on grandfathering for association plans
As we move into the second year of health care reform, our company continues to analyze regulations and determine how to implement reform effectively. In particular, we are determining how to manage the complexity of grandfathering while continuing to provide value to our customers and members.
The issue of grandfathering is especially complex for association programs. Reasons why include:
· Association programs have varied legal/contract structures
· Some association programs include both small and large employers
· Employers can take certain actions that cause their benefit plan option to lose grandfathered status for the entire association
· The health care reform law does not address these programs specifically, so application of provisions is not clear in certain areas
Therefore, we've decided we will not allow associations to grandfather going forward. This decision came after thoroughly evaluating:
· The latest grandfathering regulations
· Market interest in grandfathering
· Pros and cons of maintaining grandfathered status for associations
If you have questions or concerns, please contact your sales representative.
Now you have a single, reliable resource for health care reform information.