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Grandfathered plans are health plans that were in place before March 23, 2010, when the Affordable Care Act was signed into law. These plans are allowed to continue to remain in force indefinitely, as long as no significant changes are made to the plan, and the carriers continue to offer the plans.

Since the Affordable Care Act was implemented, new health plans in the individual market have run on a calendar-year basis, which means the plan year ends on December 31, and the new plan year begins on January 1. However, the Grandfathered plans may have a non-calendar year renewal date.

The good news is that, it is a qualifying life event for Special Enrollment Period, if your Grandfathered plan is terminated or it has a steep rate increase that you are not happy about. You can enroll into a new plan (in exchange/off exchange) in the 60 days before your old plan’s renewal date, and your new coverage will be effective the first of the month following your existing plan’s renewal date. Therefore, your health insurance coverage will be continued seamlessly.