When Congress passed the Affordable Care Act in 2010, the law allowed all group health plans that were started before the bill was signed into law on March 23, 2010, to continue to operate even if the plan did not comply with many of the requirements of the ACA. Under their grandfathered status, these plans can add new employees or family members. Also, individual health insurance policies that consumers bought before March 23, 2010, could continue as well. While these plans are exempt from many of the requirements under the ACA, they can lose their “grandfathered” status if they are changed to reduce benefits or add costs to beneficiaries.
