Final answer:
A health insurance plan would lose its grandfathered status if it changed its deductibles. Grandfathered status is given to plans that existed before the Affordable Care Act and haven't had significant changes. Charging an actuarially fair premium to the entire group could lead to cross-subsidization.
Step-by-step explanation:
A health insurance plan would lose its grandfathered status if it were to change b. Deductibles, or other specific plan benefits and contributions. Grandfathered status refers to plans that existed before the Affordable Care Act (ACA) was enacted on March 23, 2010, and have not been significantly changed in ways that reduce benefits or increase costs to consumers. These plans are exempt from some of the provisions of the ACA.
If a health insurance plan increases its deductible significantly beyond what the ACA deems acceptable (considering medical inflation and other adjustments), it could lose its exempt status. Deductibles are amounts that policyholders must pay out of pocket before the insurance coverage starts to pay. Changes in premiums, provider networks, or coverage for preventive services do not in themselves terminate grandfathered status.
Related to the provision of health insurance, the actuarially fair premium is a premium that ideally represents the true risk of insuring a group or individual. If an insurance company charges the actuarially fair premium to a group as a whole rather than to each group member separately, it could lead to cross-subsidization among the group members, with lower-risk members subsidizing higher-risk members. This could cause dissatisfaction among the lower-risk members if they become aware they are paying more than their fair share.