First few Article Sentences
Because of the uncertainty created by Health Reform, many group health plans may be “gun-shy” about making changes before the dust is fully settled and all regulations promulgated. Is concern about losing grandfathered status causing you not to make any Plan changes? Over time, maintaining this status may be more costly than cost effective for your plan. Curious? Read on.
Healthcare costs are projected to increase about 9% in 2011, on top of a 9.5% increase in 2010 (PricewaterhouseCooper’s). Plans that are “grandfathered” under Health Reform are severely limited in the changes they can make to their Plan design, cost sharing arrangements, co-insurance levels, co-pays, and employer/employee contribution relationships and yet still retain grandfathered status.