February 21, 2013
NOTICE to All CBA Insurance Participants
Attention: CBA Insurance Participants
Healthcare Reform becomes effective January 1, 2014. Plans that have grandfather status will not have to comply with all of the Patient Protection & Affordable Care Act ( PPACA) rules. Most importantly, grandfathered plans will exempt your firm from Adjusted Community Rating (ACR). While ACR rates/plans have not yet been filed with the state of Ohio, we are hearing that these rates may raise your insurance premiums more than 50%. Grandfathered plans, will be exempt from ACR.
A grandfathered group health plan is a plan that was in effect on 3/23/2010, and since that date (1) has not made any plan changes that would cause grandfathered status to be lost and (2) has complied with the notice and recordkeeping requirements. Please refer to the summary on the attachment for a more detailed explanation of the grandfather requirements.
We need to know whether your plan is eligible for grandfather status. Please see page two of this form to indicate if your plan is indeed still grandfathered. PLEASE make sure that the form is completed and returned by February 28th – INCLUDING a check mark in the appropriate spot on Page 1 to indicate your grandfather status (above “Name of Plan Sponsor”). Please note only an Employer can determine Grandfather status. Completing the survey alone does not meet the requirements for Grandfather status.
Failure to return the completed form on time will mean that your plan is not Grandfathered and will be subject to all of the provisions of PPACA.
Human Capital Practice