Feds about-face on reform will spell relief for many
Just when most companies thought it was all but impossible to hang onto their grandfathered status, the White House came out with a surprising announcement.
Under the reform law, any company that changes health insurance carriers would lose its grandfathered status.
But the feds are now weighing a change to that provision of the law. And they’ve got good reason.
For one thing, the reform bill was supposed to allow a companies to keep their healthcare plans if they were happy with the coverage. But the very nature of the law and makes it all but impossible for firms to do so.
In addition, companies have said prohibiting them from switching to less costly plans would tie their hands and force them to cut costs using other means (i.e., layoffs, etc.).
So the feds are likely to allow companies to shop from cheaper plans — and even new providers — on one condition: The benefit levels of their health plans stay the same.
We’ll keep you posted on how this unfolds.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
EBSA FY 2025 Enforcement Snapshot $1.4B recovered for workers and plans 878 civil investigations closed 253 criminal investigatio...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
Heads up, Finance pros: HR might be coming to you soon for input and approval on new OBBBA benefits changes. Much of the media coverage...
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
What should you do if you mistakenly pay out too much for one of your employer-provided benefits, such as your retirement plan? Plan spo...
