What are the benefits of grandfathering to an employer?
• Grandfathering would enable an employer to avoid the cost of adding preventive benefits to their plans, which are estimated to increase premiums by a half of a percent. • Grandfathering lets employers keep what is called a “discriminatory insured plan.” For example, a discriminatory plan would be a richer plan design for the owner of organization or for highly paid employees than the plan(s) available for other employees. • Through grandfathering, an employer can avoid the new appeals process requirements in the reform law. IBC already complies with this provision for certain plans. • Grandfathering also allows employers to avoid some of the new Health and Human Services Reporting requirements.
Related Questions
- Even though an employer is not required to pay for leave under the Act, what about continuation of health care benefits, vacation accrual time, holiday pay, pension accrual time and other benefits?
- Can an adjuster terminate temporary total disability (TTD) benefits because the employer claims the employee refused modified duty by failing to answer the phone when he called?
- Who Can Administer an HSA?
