BCBSNC Ending Grandfathered Group Health Plans: What Small Businesses Should Do Next

Blue Cross Blue Shield of North Carolina is eliminating many grandfathered small group health insurance plans this year. For some North Carolina businesses, these plans have been in place for more than 10 to 15 years with very few changes. 

Many employers simply renewed their coverage each year without needing to shop the market.

Now that these long-standing plans are being discontinued, business owners will need to choose new group health insurance coverage for their employees.

If your company received a notice that your grandfathered group plan is ending, here is what to do next.

Why Grandfathered Group Plans Are Ending

Grandfathered health plans were created before the Affordable Care Act and allowed to continue as long as certain conditions were met. Over time, many of these plans have become more expensive to maintain and less aligned with current plan structures and regulations.

As a result, Blue Cross Blue Shield of North Carolina is transitioning small businesses away from these older plans and into modern group coverage options.

For employers who have not reviewed the market in years, this may be the first time they have needed to evaluate new group health insurance options in a long time.

Step 1: Contact Carolina Insurance Professionals

The most important first step is to work with a local health insurance agency that can guide you through this transition. Many small businesses either do not remember who their current agent is or have been working directly with the carrier for years without an advisor.

Carolina Insurance Professionals can step in as your broker of record and handle the process for you. Our team helps small businesses across North Carolina review their options, communicate with the carrier, and make a smooth transition into a new group plan.

We can help you:

• Review your current BCBS notice and timeline
  
• Take over as your agent of record
  
• Compare replacement options and alternative plans
  
• Explain plan changes in clear terms
  
• Guide you through enrollment and implementation
  

There is no cost to work with our agency, and having a dedicated advisor ensures you are not navigating this change alone.

Step 2: Review Your Current Renewal Notice

If your grandfathered group plan is ending, you should receive documentation explaining:

• When your current coverage will terminate
  
• Available replacement plan options
  
• Renewal and enrollment deadlines
  
• Contribution or plan structure changes
  

It is important to review this information early so there is time to evaluate all available options before your renewal date.

Step 3: Understand That You Have New Options

Many employers assume they must move directly into the replacement plan offered by their current carrier. In reality, this is a key opportunity to review the broader small group market.

Your business may now have access to:

• Updated small group health plans
  
• Different carrier options
  
• New network structures
  
• Alternative contribution strategies
  
• Potential cost savings or improved benefits
  

Even if you ultimately remain with the same carrier, comparing plans ensures you are choosing the best fit for your team.

Step 4: Evaluate Your Team’s Current Needs

If your plan has been in place for many years, your workforce and healthcare needs may have changed. Now is a good time to review:

• Number of employees enrolled
  
• Dependent coverage needs
  
• Preferred doctors and hospitals
  
• Prescription usage
  
• Employer contribution levels
  
• Monthly premium budget
  

This information helps guide plan selection and prevents surprises later.

Step 5: Compare Small Group Health Plan Options

Moving off a grandfathered plan requires selecting a compliant small group plan. When comparing options, focus on:

• Monthly premiums
  
• Deductibles and out-of-pocket costs
  
• Provider networks
  
• Prescription coverage
  
• Employer contribution flexibility
  
• Employee cost-sharing
  

Even small plan design changes can have a significant impact on both employer and employee costs.

Step 6: Avoid Last-Minute Enrollment Decisions

Many businesses have not shopped for health insurance in years. Waiting until the last minute can limit your choices and create unnecessary stress.

Starting early allows time to:

• Review multiple plan options
  
• Ask questions
  
• Educate employees
  
• Implement coverage without gaps
  
• Make confident decisions
  

A Major Opportunity to Reevaluate Coverage

While losing a long-standing grandfathered group health plan may feel disruptive, it also provides an opportunity to reassess your company’s benefits strategy. You can review whether your current plan structure still makes sense or if there are better options available for your business and employees.

Many small businesses find that modern group plans offer more flexibility, updated networks, and clearer cost structures compared to older grandfathered plans.

Get Guidance on Your Next Steps

If your Blue Cross Blue Shield grandfathered group plan is ending, now is the time to start reviewing your options with a trusted advisor. Carolina Insurance Professionals helps small businesses across North Carolina evaluate group health insurance options and transition smoothly into new coverage.

Contact our team today to start the conversation and get guidance on your next steps.