Interim final and proposed regulations relating to the status of “grandfathered health plans” under the Patient Protection and Affordable Care Act (“PPACA”) will be published by the Departments of Treasury, Labor and Health and Human Services on June 17, 2010, in the Federal Register. Grandfathered health plans (i.e., those existing as of March 23, 2010, the date of the PPACA's enactment) are exempt from some, but not all, of the mandates imposed on group health plans (both insured and self-funded) under the PPACA. Generally, the regulations describe the extent to which employers may amend their group health plans and still maintain their grandfathered health plan status. While these regulations provide plans with some flexibility to make design and benefit changes without sacrificing their grandfathered status, this flexibility is limited and many plans may find themselves relinquishing their grandfathered status if they pursue plan changes that decrease benefits or increase participants’ out-of-pocket costs. The regulations also describe transitional rules and special rules for collectively bargained plans. A complete analysis of the regulations regarding the grandfather rules will be provided in additional alerts and will be posted on the Baker Hostetler Health Care Reform website in the near future.
View the Interim Final Rules for Group Health Plans and Health Insurance Coverage Relating to Status as a Grandfathered Health Plan under the Patient Protection and Affordable Care Act (Updated June 17, 2010)
View the Grandfathered Health Plans Fact Sheet
View the Grandfathered Health Plans FAQs
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