White House Mulls Changing PPACA Grandfathering Clause

The White House and IRS have already delayed and/or modified requirements mandated in the Patient Protection and Affordable Care Act (PPACA), and now the law’s grandfathering provision may be altered.

Under PPACA, any company that changes its health insurance provider loses its grandfathered status, which would open the company to stricter conditions and regulations–and a potential fine. However, the White House is now mulling whether to allow companies to shop for cheaper insurance and retain their grandfathered status–with no penalty.

Earlier, the Internal Revenue Service delayed by a year the PPACA requirement that companies report the amount of the employee’s insurance premium on the W-2 form. Earlier, the White House allowed McDonald’s and companies with similar plans to retain their health insurance plans for low-wage workers that didn’t include PPACA-approved benefit levels.

Employers, an easy way to inform your employers of their rights and obligations under PPACA is to obtain and post a copy of Personnel Concepts’ Health Care Reform Employee Information Poster. Get yours today.


NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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