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Large Employers Rate Flexibility Over Advantages of "Grandfather" Status

A Hewitt Associates survey of 466 large employers released on August 10, 2010 indicates most expect to lose their Grandfather plan status in the next two years, and for sure by 2014. Reasons sited for loss include changes they plan to make regarding:

  • Plan design (72%)
  • Employee premium subsidy (39%)
  • Insurance carriers (16%)
  • Union contracts (15%)

These employers indicate that overall health benefit strategy is more important than preserving Grandfather status long-term. In addition, most of these employers already comply with health reform requirements for non-Grandfathered plans, so losing Grandfather status would not add significant costs to the plan.

Click here to read an Employee Benefit News article on the survey results.

Posted by Cristie Travis at 2:47 PM

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