Grandfathered Plan
Updated: 06 January 2025
What Does Grandfathered Plan Mean?
A grandfathered plan is an insurance policy that was established before a new law was enacted, which could alter the plan’s requirements. If these grandfathered plans maintain their status, they can remain valid and compliant with the law, even if they do not meet the new standards.
Insuranceopedia Explains Grandfathered Plan
Many health plans that existed before the Affordable Care Act was implemented by the Obama administration are considered grandfathered plans. Although these plans may not comply with the new standards set by the Affordable Care Act, they are allowed to remain legally in effect due to their grandfather status. However, a plan may lose its grandfathered status if significant changes are made to it, such as major alterations in costs or benefits.
