Does It Make Sense To Switch Your Grandfathered Health Insurance Plan?

First of all, you might ask what is Grandfathered Health Insurance Plan? Health insurance plans sold on or before the introduction of the Affordable Care Act (ACA) on March 23rd, 2010, are considered grandfathered plans. These plans still exist today for both individuals and businesses. New employees and family members (dependents) may still be added to your grandfathered plan after March 23rd, 2010.

Grandfathered health insurance plans may or may not cover the same benefits as plans regulated by the Affordable Care Act (ACA). For example, grandfathered health insurance plans are not required to cover free preventative care, cover pre-existing health conditions, may have monetary restrictions for organ transplants, or be held accountable to an annual rate review, unlike health insurance plans regulated by the Affordable Care Act. While in the past, their rates were sometimes lower than the ACA plans, in recent years the premiums of grandfathered plans have risen and are often higher and the benefits are often less than ACA health insurance plans.

Grandfathered Renewal Dates:

Blue Shield of CA – January 1st

Anthem Blue Cross – April 1st

Kaiser – January 1st

You have the option to either continue with your existing grandfathered plan at renewal or you can instead choose to enroll in an Affordable Care Act health insurance plan that may offer more consumer protections and richer plan benefits depending on your plan choice. You may also be eligible for premium assistance through Covered CA to help lower your monthly premiums, therefore it makes sense to review your grandfathered benefits with the ACA health plans offered in 2022.