This report from the Robert Woods Johnson Foundation explores "Grandfathered" Health Plans in the context of health care reform, focusing on what are the positive and negative aspects of these plans and how might these plans change as new regulations are put in place.

From the report:

Policy-makers took care during deliberations over the Affordable Care Act (ACA) to stress that Americans could keep the health insurance they already have, if they wanted to, in a post-reform world. The law ‘grandfathered’ health plans that were already in effect on that date, and exempted them from many changes the law requires of new health plans.

An employer or insurer offering coverage when the ACA took effect in March may elect to—but is not required to—have the plan grandfathered and continue to operate it even after 2014. These grandfathered plans are then subject to some regulations, including that they are generally not permitted to enroll new applicants in the plan. There are also several other permitted exemptions for grandfathered plans, leaving employers and employees alike wondering whether a grandfathered plan or newly established plan is their best option.

Full Report:  'Grandfathered' Health Plans (PDF | 214 KB) 

Robert Wood Johnson Foundation. (2010). 'Grandfathered' health plans. Merlis, M.