What happens if an individual has a Grandfathered Plan under the ACA?

When an individual has a Grandfathered Plan under the Affordable Care Act (ACA), it means that the plan was in existence before the ACA was enacted on March 23, 2010, and has not undergone significant changes that would cause it to lose its grandfathered status. One of the critical aspects of a Grandfathered Plan is that it is allowed to maintain certain provisions from before the ACA, which includes the ability to deny coverage for pre-existing conditions.

This distinction is important because the ACA requires that most health insurance plans provide coverage for pre-existing conditions without exclusion or increased costs, but grandfathered plans are exempt from this requirement. Consequently, individuals with these plans may face limitations that newer plans cannot impose, making option B the correct answer. This highlights a significant difference in coverage protections between grandfathered and non-grandfathered health insurance plans.

In contrast, the other options either misinterpret the nature of a Grandfathered Plan—such as mistakenly suggesting that it cannot be modified or that the individual must enroll in a new plan—or do not accurately reflect the automatic renewal process applicable to Grandfathered Plans. They are inherently allowed to continue as long as they maintain their grandfathered status without significant changes.