Get access to the exclusive HR Resources you need to succeed in 2018!
Training, policies and tools to help HR prevent and respond to harassment claims.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Develop your HR competencies and knowledge in-person in 12 U.S. cities or virtually.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
When the Affordable Care Act was first passed, many employers were under the impression that if they were happy with their current health plan offerings, they could keep them intact. But when they examined the fine print, “they soon understood that keeping their current health plan offerings and maintaining their grandfathered status would not be an easy task,”
Amy M. Gordon, a partner in the employee benefits practice at law firm McDermott Will & Emery, told
With respect to grandfathered health plans, the guidance explains that numerous types of changes will cause a plan to lose its grandfathered status, Gordon noted, including:
“Once a plan loses its grandfathered status, it cannot get it back,” Gordon emphasized. “Although employers that self-insure their employees’ group health coverage will not discontinue that coverage, they will need to add additional coverages once they lose their grandfathered status.” For instance, nongrandfathered group health plans must:
“These do not seem like big changes, but each will drive up the cost of coverage,” Gordon said.
In addition, to avoid the shared-responsibility (or “pay or play”) mandate that takes effect Jan.1, 2015, for calendar-year plans, an employer’s group health plan must provide
affordable coverage that meets the minimum value requirements. “This means that for employees whose household income falls within 100 to 400 percent of the federal poverty line, those employees may not be charged greater than 9.5 percent of their annual household income for individual health coverage,” Gordon explained.
is an online editor/manager for SHRM.
Related SHRM Articles:
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Save $450 off onsite member rates when you register by 2/2
SHRM’s HR Vendor Directory contains over 3,200 companies