What Happens to Current 10k Plans Come 14'

[Yagents]

KABOOM !

You know those clients that are buying those $6000-17,000 deductible plans that are NON grandfathered............Come 2014, they all must comply with HSA out of pocket limits. The plans must be converted to a richer plan. Add in the 3 to 1 age ratio maximum, and GI and you've got (I've got) a block of clients that are gonna drop off the books, Unless your state allows you to participate in the state exchange.

You better keep those GF plans when it makes sense.

 

[somarco]

converted to a richer plan

or pay the penalty . . .

Seems to me it would be cheaper to keep the plan and pay the penalty.

 

[CHUMPS FROM OXFORD]

I hope so. I have a few on the books.

 

[Guest]

We have tons of those too.

 

[ABC]

I thought it depends on what the states determine what is compliant?

 

[Yagents]

ACA determines what is compliant. States pick off this new compliant menu for the exchanges. Half of the plans offered as compliant today, won't be in 2014.

 

[somarco]

ACA determines what is compliant. States pick off this new compliant menu for the exchanges. Half of the plans offered as compliant today, won't be in 2014.

I understand that. What I am missing is the part that says if you have a non-grandfathered plan you MUST drop it and buy a new one.

Yes, I know Obummer said if you like the plan you have you can keep it.

My reading of the law is if you have a non-Obama plan you can keep up but will have to pay a penalty. Same penalty you would pay if you simply refuse to buy insurance (which many will).

 

[Yagents]

My understanding is the insurance company is going to convert it for you. No option. You can "keep" your plan only if you bought it before 3/23/10. Otherwise conform or drop it. Either way, the business probably drops off the books.....hence the point of the thread.

If I were to receive a letter stating that my plan is will stay the same, but is non compliant, therefore I must pay a penalty also..........I would drop the plan and only pay the penalty.

If they convert it like I'm stating, and the price skyrockets, they were probably on a budget, hence the higher deductible plan, and will probably be a good candidate for a subsidy in the exchange.

 

[somarco]

My understanding is the insurance company is going to convert it for you. No option.

Why would they do that, unless it is in the law? Which circles back to my original, and still unanswered question.

 

[Yagents]

Bob, what happens to the plans that got "waivers"? Do they keep getting waivers after 2014? Or, do they have to convert to be compliant?

As an example, all NON GF plans will have maternity added in 2014. True or False? If True, same goes for the lower deductible requirement.

I'm just communicating what several ins co exec's told me. I would hope they are more "in the know" than you or I............or maybe not. Call you local insurance company yahoo and ask the same question. Some companies have no answer to the question.......18 months and counting........