Health Plan Renewal Decisions More Difficult for Companies This Year

As companies enter plan renewal season they are in a far different place than they were in 2010.

“Last year everyone was worried about keeping their grandfathered status under the new health reform law,” said Jay Turner. “Employers felt it was their only option or risk triggering aspects of the law they did not completely understand yet.”

This year, says Turner, companies are taking a much more nuanced approach.

“They have lived with the new health reform law for a year and have a better understanding of its impact on the coverage they offer,” says Turner. “They also have a more complete picture of what they want to offer to employees, and what they can afford to offer to employees.”

Armed with this information, employers will be making much more informed choices regarding their grandfathered status.

“Some may decide it’s best to keep their status in terms of how they operate,” says Turner. “Others will choose to abandon it and will be subject to additional provisions of the health care reform law. Either way, these decisions must be based on an individual company’s situation and outlook.”

Turner is available to discuss what companies need to consider as they decide whether or not to keep their grandfathered status under the health reform law for the coming year. [11/10/2011]