Lucky, Again

This just in – Grandmothered Policies are now extended to the end of 2018

This is called Transitional Relief.  Grandmothered policies were issued with an effective date between April 2010 (right after the passage of the Patient Protection and Affordable Care Act) and December 31, 2013 when the law was completely implemented.  Grandmothered policies were underwritten and based on an age ratio of 5:1 or higher.

Healthy and/or young people got a good deal in 2013. If you didn’t, if you were charged extra or if you needed a policy that covered maternity or a pre-existing condition, you purchased a new, compliant policy in 2014.  The only people left were the cheapest to insure.  And though we haven’t added any new, healthy, people to this pool, the Grandmothered policies are still a better risk than the general population.  Grandmothered policies are cheaper!

This rule from CMS will allow each state to decide whether impacted individual policies, group policies, or both may be retained until 2018. Mary Taylor, Lt. Governor and Insurance Commissioner, has been willing to extend Grandmothered policies in the past.  There is no reason to believe that she would block this now.

And yes, we did talk with our elected officials about this while in Washington, but I don’t know that we can claim credit for it. This may fall under the area of keeping the waters calm while the storm is brewing on Capitol Hill.

Quick Example:

My current policy – Anthem HSA Qualified, $5,500 Deductible – $428.99 per month

2017 policy – Anthem HSA Qualified, $6,500 Deductible – $863.74 per month

If you have a Grandmothered policy you are lucky, again.

DAVE