What is a Grandmothered Plan in the context of health insurance?

A Grandmothered Plan refers to a type of health insurance plan that was in effect prior to the implementation of the Affordable Care Act (ACA) and is allowed to continue operating without complying with some of the ACA's requirements. These plans were typically less comprehensive than ACA-compliant plans and were eligible to remain in force through 2016, meaning they could continue providing coverage even though they did not meet updated standards set by the ACA.

This designation helps protect individuals who had coverage they liked and wish to keep it, even if it does not cover the same essential health benefits that newer plans must provide under the ACA’s regulations. The allowance of these plans was part of a compromise to acknowledge the needs of those consumers while transitioning to the new health care landscape created by the ACA.