As used in connection with the Affordable Care Act: A group health plan that was created—or an individual health insurance policy that was purchased—on or before March 23, 2010. Grandfathered plans are exempted from many changes required under the Affordable Care Act. Plans or policies may lose their “grandfathered” status if they make certain significant changes that reduce benefits or increase costs to consumers. A health plan must disclose in its plan materials whether it considers itself to be a grandfathered plan and must also advise consumers how to contact the U.S. Department of Labor or the U.S. Department of Health and Human Services with questions. (Note: If you are in a group health plan, the date you joined may not reflect the date the plan was created. New employees and new family members may be added to grandfathered group plans after March 23, 2010). Source: Healthcare.gov
If your insurance company cancels your grandfathered plan, you have several choices. Call our special plan cancellation customer service number and a representative can explain your options: 1-866-837-0677 (TTY: 711) Monday through Friday, 9 a.m. to 7 p.m.; Saturday and Sunday, 9 a.m. to 5 p.m. ET.
Your options include:Buy a plan the company offers in its place. Your insurer must allow you to buy any of its other plans available to you.Buy a new plan in the Marketplace. You may qualify for lower costs on monthly premiums and out-of-pocket costs based on your income. All Marketplace plans include the new rights and protections. Because your coverage is ending, you qualify for a Special Enrollment Period that lets you enroll in a plan outside the Open Enrollment period. Note: If your plan is cancelled, in some cases you can buy a catastrophic health plan. See “What if my plan is cancelled and I can’t afford a new plan?” for more information.Buy a plan outside the Marketplace. This can be a good option if you don’t costs based on your income. Most plans outside the Marketplace include the new rights and protections.
Kosman Wrote: But what is that grace period? I know that if a health insurance company gives me notice I can buy another plan. But do we know legally the minimum "reasonable" amount of time they must give? And my real concern is getting nailed on taxes for not having health insurance (such as if you forgot to get a new plan before your old one was cancelled). Is there specific requirements for that? I was curious if anywhere it tells u exactly what results in a tax penalty and how your policy being cancelled may affect that.
Kosman Wrote: I guess it is tax season and I am wondering for myself but for other tax filers what are specific requirements you, your accounting software or your accountant may ask in regards to not paying penalty for not having health insurance. Or is it one of those vague\ambiguous requirements open to interpretation?