As early as Tuesday, Sept. 28, employers using limited medical plans are facing many changes when grandfathered group health insurance plans begin to renew, states Fringe Benefit Group, Austin, Texas.

"The limited medical industry is undergoing massive change," says John Conkling, vice president of national accounts for Fringe Benefit Group. "Effective today, carriers will no longer be able to write new co-insurance based limited medical contracts. On renewals after today, some groups will be able to apply for waivers from the annual limits provisions, but there is a lot of uncertainty with regards to how the waiver process will work.

"Furthermore, companies who are actually granted a waiver will have to reapply upon renewal because the waiver is only good for one year. The good news is that because fixed indemnity supplemental benefit plans are not subject to the new regulations, they are still available to employers who want to offer employees a robust and affordable limited medical plan."