Grandmothered Health Plans To Be Cancelled In California

If your company took advantage of the grandmother option in 2014, your plan will not be available for renewal in 2015. All ‘grandmothered’ plans in California are being canceled at their renewal and employers will have to renew into plans that are ACA compliant.”

While many employers have resisted changing to the Obamacare plans due to the higher cost, the silver lining is that benefits will actually be BETTER under the ACA; plan limitations on a number of services such as physical therapy, speech therapy, and mental health have been eliminated.

The new group plans fall into four categories or Metal Levels:

  • Bronze: Health plan pays 60% of expenses on average
  • Silver: Health plan pays 70% of expenses on average
  • Gold: Health plan pays 80% of expenses on average
  • Platinum: Health plan pays 90% of expenses on average

Though plans will be pricier, benefits are still going to be key to attracting top-notch employees. With the job market improving, there are certain benefits that good employees feel they must have and medical insurance is generally at the top of the list. Given the tax advantages of group insurance, most companies will opt into the ACA at renewal and continue offering robust coverage to their valued employees.

Have a question ?

At JGA, we’re here to help you think through the employee benefit needs of your company. With creative solutions, hands-on help and employee education we can help you reimagine your benefits and successfully transition to the ACA.