Grandfathered Health Plans

[ABC]

That is very interesting concept about the PEO business model.

I have client that has a lot of hispanic employees. These employees will not participate in the health plan or 401k.
So they lease the employees from a type of employee staffing company so that they can meet participation on both health and 401k.

You make an excellent point!

I know these type of staffing companies currently do not offer benefits if they do its a type of mini med.

I think you misunderstood what I wrote. First, the PEO is not going to provide insurance to the employees. It is going to house them and pay the fine for not providing "government approved" coverage. There is no adverse selection as there is no insurance.

Second, I know of several PEOs in the area that are extremely competitive.

Now I agree, PEO health insurance can blow up in your face, but I'm suggesting just the opposite. Put the employees in the PEO so you don't have to offer them the coverage you offer your key employees.

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I stand corrected on the Grandfathering issue.
Wellpoint explained the Grandfathering info to me prior to June 17th.

 

[nycagent]

Dave, thanks for also pointing that out to ABC. And ABC I wasn't trying to be snarky, so I don't get understand your emphasis. I was trying to help out.

 

[VolAgent]

That is very interesting concept about the PEO business model.

I have client that has a lot of hispanic employees. These employees will not participate in the health plan or 401k.
So they lease the employees from a type of employee staffing company so that they can meet participation on both health and 401k.

You make an excellent point!

I know these type of staffing companies currently do not offer benefits if they do its a type of mini med.

Exactly, I see it as a perfect fit for lower income employees. Now, there may be other problems with the idea, but it seems to make sense.

 

[jbage007]

If you like your plan, you can keep it.

Unless you can't afford it anymore.

In which case, you can suck it up and get one of our new spiffy plans that covers everything and is free.

 

[ABC]

I have had to go back to about 5 groups with 9-1 renewal and explain I was wrong about the employer vs employee contribution.

I appreciate you guys putting up with my **** and setting me straight.

This entire health reform is one big FUBAR!

 

[Dave020]

And it's only going to get more confusing as time goes on. One benefit to this forum, we can all discuss these issues and work out at least what we think it means

Jbage:

I think it was misquoted. I think what he meant to say was "if I like your plan, you can keep it"

 

[Labman]

They can't change the deductible either. Am I correct on that?

 

[Dave020]

Yes, although I think there is a range. Basically any significant changes to co-pays, OOP, deductible, plan benefits or premium contribution formula (in favor of the employer) are all areas which can effect the plan's status.

"If I like your plan, you can keep it"

 

[Full Throttle]

What are the advantages to maintaining grandfathered status? Not sure I understand the full scope.

 

[ABC]

What are the advantages to maintaining grandfathered status? Not sure I understand the full scope.

As I understand it ( beware I have wrong lately)


If you are grandfatherd in your plan will not have to cover some aspects of care unlimited.
This might be chiropractic,Physical therapy, Speech therapy and so on. Right now most plans have limits on Outpatient Therapies, Homecare Services & Private Duty Nursing.

If you are grandfathered in then you can keep those limitation in place (4%-6% savings) compared to the obamacare that is going to cover all those treatments on an unlimited basis.

Please check and re-check my view.