NJ Spotlight published the following article on July 29, 2014. To read the full article, click here.
EXPLAINER: ACA’S IMPACT MORE GRADUAL FOR THOSE WHOSE JOBS PROVIDE INSURANCE
As ‘grandfathered’ plans fade, however, more will be affected by new health coverage regulations
The Affordable Care Act has had its most visible impact on people who were able to buy health insurance through the federal marketplace or state-based exchanges and lower-income people who now receive Medicaid under the ACA’s expanded income-eligibility guidelines.
But what about the majority of people who are insured through their employer?
The effect of the law on employer health plans is expected to grow over time, as the number of plans exempted from the ACA’s requirements shrinks.
For now, the impact of the law on work-provided plans depends on whether the employer has a self-funded insurance plan or purchases a commercial insurance plan.
What it means: One of the goals of the ACA was to ensure that all health plans offer a minimum set of benefits, so everyone covered by insurance could rely on it paying for essential healthcare services. But that goal conflicted with another explicit promise from President Barack Obama, who said those who were happy with their employer-provided insurance wouldn’t be forced to change it.
The way this conflict was resolved is that employer plans won’t have to comply with many provisions of the ACA as long as they don’t substantially cut benefits or increase costs for consumers.
But healthcare experts note that insurance plans have historically changed with the times and say it’s unlikely that any health plans will remain “grandfathered” as time passes.