Fewer 'Grandfathered' Plans Under Affordable Care Act in 2013 - Modern Distribution Management

Log In

Fewer ‘Grandfathered’ Plans Under Affordable Care Act in 2013

Changes in company coverage reducing number of plans exempt from ACA provisions.
PublicPolicy-blog
Author
Date

Many aspects of employer-provided healthcare plans in 2013 are largely unchanged from 2012, according to The Kaiser Family Foundation/Health Research & Educational Trust 2013 Annual Employer Health Benefits Survey. The percentage of plans exempt from some provisions of the Affordable Care Act, though, experienced a double-digit decline from the prior year.

In 2013, the average annual premiums for employer-sponsored health insurance for singles and families increased by a modest 5 percent and 4 percent from 2012 levels, respectively. Covered workers also face similar premium contribution levels and cost-sharing requirements this year, and the percentage of firms offering health benefits to at least some employees (57 percent) and the percentage of workers covered at those firms (62 percent) are statistically unchanged from 2012. 

A more dramatic change, according to the report, is the percentage of covered workers enrolled in “grandfathered” health plans, plans which are exempt from many provisions of the Affordable Care Act, which declined to 36 percent of workers in 2013 from 48 percent in 2012.

For a plan to be considered “grandfathered,” it must have already been in place when the ACA became law in March 2010, and the plan must not have undergone significant benefit or employee cost changes since then. As employees come and go and employers continue to make coverage adjustments, the percentage of worker plans exempt from the ACA will continue to decline. Fifty-four percent of firms said they shopped for a new health plan or carrier during the previous year, and of those, 18 percent changed carriers and/or the type of health plan they offered (15 percent).

The ACA exempts grandfathered plans from a number of its provisions, such as the requirement to fully cover preventive care or the new rules governing small employers’ premiums ratings and benefits.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.