Grandfathered Status - Worth It?

[Full Throttle]

I just got a notice on my personal plan with BC/BS, the rate went up 32% this year. This is a grandfathered HDHP, trimmed down from the new plans that exist. If I switch carriers to the same HDHP deductible plus have the extras such as preventive care, the competitive carriers are offering plans at what I paid last year.

The only catch, I give up grandfathered plan status. I'm tempted to switch now, the main question is will I regret it later when I'm forced into the exchange and pay much more for years to come? I don't know the answer. Or will the healthy people in the pool I am in keep switching out over the next few years due to the rates (and possibly subsidies later) and it leads to the death spiral of the block of business?

Thoughts? I don't want to save $750 this year, but pay thousands more later for short term savings. But if grandfathered status likely won't matter, I want my $750!

 

[taterpeeler]

go with a new plan. my view is it does not matter you will one day be on the exchange plan due to the increasing rate on the non grand daddy plan anyhoo.

the only time a client should stay on an old plan is if they are a) going to pay allot more NOW for the non grand pop plan and B) they are on a child only plan from long ago


the tater tot has spoken

 

[ABC]

It comes down to essential benefits.
A grandfather plan does not have to cover the essential benefits.
Since the federal gov. punted issue of essential benefits to the states it's all FUBAR.

I would switch to save the money.

 

[Full Throttle]

I just went to put in an application only to find out I'm stuck anyway. My wife is covered by her employer plan and I'm on my own plan. But, because I have a baby on the way and babies are guaranteed issue, I'll be declined.

Thank you Obama!
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Found my solution - go to a plan for single people only (no children allowed). Max out my HSA contribution for 2012 right now before I switch plans. Then switch back to an HSA plan next year after the baby is born. Done.

 

[Yagents]

I just went to put in an application only to find out I'm stuck anyway. My wife is covered by her employer plan and I'm on my own plan. But, because I have a baby on the way and babies are guaranteed issue, I'll be declined.

Thank you Obama!
- - - - - - - - - - - - - - - - - -
Found my solution - go to a plan for single people only (no children allowed). Max out my HSA contribution for 2012 right now before I switch plans. Then switch back to an HSA plan next year after the baby is born. Done.

First, you can only fund an HSA on a ratio based on # of months you owned eligible HDHP. 2 months? 1/6 of $3100 is allowed. Do not get mixed up with over contributing nightmares.

Second, if wife is pregnant, you can't move to another company as you stated. I would raise my deductible on current HSA if not at 5k yet.

Third, if you're young (under 40), and make over $90k for the family, and own a GF HSA 5k plan, I would stick tight on current plan. The same plan will cost much more on the exchange in 2014. It's one of the only segments it makes sense to stay GF......young healthy wealthy males. Everyone on the fence should at least wait until the Supreme court makes a decision in June, 4 months away

 

[Full Throttle]

First, you can only fund an HSA on a ratio based on # of months you owned eligible HDHP. 2 months? 1/6 of $3100 is allowed. Do not get mixed up with over contributing nightmares.

You're right, I had myself confused. Pro-rating is not necessary if I come onto a HDHP at any point in the year as long as I stick around until Dec. 31st of the following year. I'm not doing that, so pro-rated would be necessary.

Second, if wife is pregnant, you can't move to another company as you stated. I would raise my deductible on current HSA if not at 5k yet.

Already above that mark. Transferring to a single only plan. Save $700 for the year and the deductible is $2,000 a year less than my HDHP. No brainer at this point, I can always switch back to the HDHP in the future without underwriting with the same carrier if desired.

Third, if you're young (under 40), and make over $90k for the family, and own a GF HSA 5k plan, I would stick tight on current plan. The same plan will cost much more on the exchange in 2014. It's one of the only segments it makes sense to stay GF......young healthy wealthy males. Everyone on the fence should at least wait until the Supreme court makes a decision in June, 4 months away

I'm in that category, certainly don't feel wealthy! That's what I was trying to decide. The grandfathered plans from the carrier are actually more expensive than the non-GF plans at this point. I don't get it. That was my orignial question, is it worth spending $700 a year more coverage at this point with a higher deductible just to maintain grandfathered status? I don't know the answer.