What type of plans are referred to as grandmothered or transitional plans?

The term "grandmothered" or "transitional plans" refers specifically to health insurance plans that were in effect prior to the implementation of the Affordable Care Act (ACA) but do not meet the new standards established by the ACA. These plans may have been allowed to continue operating under certain conditions, which is why they are categorized this way.

The ACA introduced a set of regulations aimed at improving health insurance quality and consumer protections, such as eliminating lifetime limits and requiring essential health benefits. Grandmothered plans, however, largely maintained their previous structures and benefits, which means they fall short of these updated ACA requirements. This distinction is crucial because it highlights how certain plans are allowed to exist despite not conforming to the new health care law.

In contrast, plans that were discontinued, plans for veterans, and newly created plans do not capture the essence of what grandmothered or transitional plans are. Discontinued plans are simply no longer available, and plans for veterans have a separate set of rules altogether, while newly created plans are designed to comply with ACA standards. Therefore, the correct identification of grandmothered or transitional plans as those not meeting ACA requirements underscores their unique status in the landscape of health insurance.