One of the “loopholes” available to employers in complying with the Patient Protection and Affordable Care Act is the grandfather clause.
If your employee health plan is currently a grandfathered plan, you may want to consider relinquishing that status. Or, if you are among those employers that, for a specific reason, wants to maintain grandfather status, then you need to pay close attention to the rules permitting a plan to be grandfathered in.
What are the advantages of grandfathered status?
What PPACA requirements apply to grandfathered plans?
Most PPACA requirements apply to grandfathered plans. This includes:
What must a plan do to maintain grandfathered status?
To maintain grandfathered status, a plan must look at its benefits and contribution levels as of March 23, 2010 and must not:
Should a plan keep grandfathered status for 2014?
Whether to keep grandfathered status for 2014 is the plan sponsor's decision. Typically, the employers most interested in maintaining grandfathered status are those who: