Confused about the Grandmothering bill that the United States Senate just passed? Most agents are confused too, if they are not Group Health Insurance agents. Senate Bill 1446 was passed to allow Group Health Insurance for smaller employers to keep their existing plan during 2015. The reasoning was to allow small employers the ability to “ease” into ObamaCare and the Affordable Care Act. The Senate Bill 1446 has been affectionately called the Grandmothering Bill because of the previous reference to Grandfathering. Grandfathered Group Health Insurance plans are plans that were in effect prior to March of 2010 and the small employers have not made significant changes to that plan or the contribution associated with that plan. SB 1446 is a good thing, a very good thing. It will allow Group Health Insurance to slowly adapt to all of the mandates and compliance issues surrounding much of the ACA, Affordable Care Act.
Grandmothering and Small employer groups that have a plan prior to 2014
If you are a small employer, less than 100 employees and you have a Group Health Plan that you like, you get to keep that plan for another year, as long as your plan renews towards the end of the year. Honestly, this has been a logistical nightmare for Group Health Insurance brokers, but totally worth it. We have many Group Health clients that were not ready to switch over to the new 2014 plans and all of the nuances that are associated with them. I really feel sorry for employers that have Group Health Insurance plans and have a broker that does not specialize in Group Health. Besides the paperwork it takes to make the switch, many groups would be better off with a 2014 plan. Employers with a Rate Adjustment Factor (RAF) of 1.1 will probably see a rate reduction moving to a 2014 plan.
Employers now more than ever, need expert advice, a Group Health Specialist
Even if its not Brauer Insurance, I strongly recommend employer groups seek the advice of a Group Health Insurance specialist. There is just no reason not to, unless your broker is your cousin or brother in law. Our services are free, and its a matter of who you want to work with, a Generalist or Specialist. I remind people; if your loved one had a heart condition would you take them to a Cardiologist or a General Practitioner? And how about this…what if their services didn’t cost you anything. There is absolutely no reason to use a broker that does many lines of insurance. Some agencies offer Group Health Insurance, we SPECIALIZE in it!