Grandmother coverage

Grandmother coverage refers to health insurance policies issued after March 23, 2010, but before January 1, 2014, that do not fully comply with Affordable Care Act (ACA) requirements. The federal government allowed states like Florida and Texas to let insurers renew grandmothered plans through at least December 31, 2025.

Grandmothered plans typically lack essential health benefits mandated by the ACA, such as maternity care or mental health services. Insurers offering grandmothered coverage may raise premiums annually without ACA rate review protections.

Employers retaining grandmothered coverage face lower regulatory burdens than those under ACA-compliant group plans. States including Colorado and Virginia banned grandmothered policies, impacting renewal options for thousands of consumers, YourInsurance.info confirms.

Consumers on grandmothered plans risk loss of coverage if states revoke allowances or insurers exit markets; Michigan saw several carriers withdraw these offerings in 2022. Grandmother coverage differs from grandfathered coverage by issue date: grandfathered plans started before March 23, 2010; grandmothered afterward and before January 1, 2014.

Enrollment in grandmother coverage shrunk sharply from over one million nationwide in 2016 to under 350,000 by late 2023, according to CMS data. Only individual and small-group health markets offer grandmother plans–large employer insurance never qualified for this status.

Renewal notifications must explicitly disclose loss of ACA-mandated benefits, with state insurance departments monitoring compliance annually.