House to Consider Expanded ACA Grandfather Clause

September 10, 2014

pic-health-forms-insuranceThe House could consider as early as today, a bill that would allow people to keep their current health insurance plans—even if they don’t meet the new standards implemented by the Patient Protection and Affordable Care Act (PPACA). The bill, the Employee Health Care Protection Act of 2013 (H.R. 3522), introduced by Rep. Bill Cassidy (R-La.) essentially allows health insurance plans that were offered in 2013 to continue being offered through 2018. Such plans would be considered as meeting the minimum essential coverage requirement.

H.R. 3522 also would allow insurers to continue offering group health plans that were offered in 2013 to any group—even if that group hadn’t previously purchased that particular plan—until Dec. 31, 2018. Any individual purchasing one of these plans—even those that are non-PPACA-compliant—would meet the individual mandate requirement provided the plan was offered at any point by the insurance company in 2013.

The bill does prevent insurers from offering these plans as part of an insurance exchange, which would prohibit those individuals who purchase these plans from qualifying for any tax subsidy under PPACA.

The bill was reported favorably out of the House Committee on Energy and Commerce on July 30, 2014 and has been put on the House floor calendar.

Please click here to view the full legislation.