Grandfather status applies to health insurance plans that have been in force before ACA (Obamacare) was passed in March of 2010. In order to maintain Grandfather status, you must keep the same plan and have no changes made to it since. Any change in deductible or plan type would cause you to loose grandfather status.
Is it important? It depends on what your view of the future is. One side believes grandfather status is important and should be kept if possible. When the health care exchanges open in 2014, those who are grandfathered will not be required to carry all the new required coverages ACA mandates.
Others feel grandfather status is a gimmick and people will eventually lose it. After March of 2010, no one else could get grandfather status. So that group of people (insurance policies) has no new people coming into it to help offset the increase claims that come with age. That grandfathered group of policies will start to see rates increase as claims increase. The healthy will likely drop grandfather status and go to the exchanges. This leaves even fewer health people to offset those who are sick on the grandfather pool, thus cause additional rate increases until everyone on grandfather status drops that coverage.
How long that will take is up to debate and will like play out over time. Will it take 3 years or 6 year or more; no one knows.
If you are unsure if you have grandfather status, call your health insurance company and ask. They will be able to tell you.
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Is it important? It depends on what your view of the future is. One side believes grandfather status is important and should be kept if possible. When the health care exchanges open in 2014, those who are grandfathered will not be required to carry all the new required coverages ACA mandates.
Others feel grandfather status is a gimmick and people will eventually lose it. After March of 2010, no one else could get grandfather status. So that group of people (insurance policies) has no new people coming into it to help offset the increase claims that come with age. That grandfathered group of policies will start to see rates increase as claims increase. The healthy will likely drop grandfather status and go to the exchanges. This leaves even fewer health people to offset those who are sick on the grandfather pool, thus cause additional rate increases until everyone on grandfather status drops that coverage.
How long that will take is up to debate and will like play out over time. Will it take 3 years or 6 year or more; no one knows.
If you are unsure if you have grandfather status, call your health insurance company and ask. They will be able to tell you.