Government Issues Important Guidance on Grandfathered Plans Under Recent Health Care Reform Legislation

more+
less-

On June 14, 2010, the Internal Revenue Service, the Department of Labor, and the Department of Health and Human Services issued interim final rules for group health plans relating to their status as a Grandfathered Health Plan under the Patient Protection and Affordable Care Act (the "Rule”). The Rule describes the requirements for a group health plan or health insurance coverage to retain its "grandfather" status under the Patient Protection and Affordable Care Act.

A key element of the Reform Acts was the provision that allows group health plans in effect on March 23, 2010, to avoid complying with many of the health insurance reforms required by the Reform Acts. These plans are referred to as “Grandfathered Health Plans”. However, the Reform Acts failed to address at what point changes to a group health plan or health insurance coverage in which an individual was enrolled on March 23, 2010 are significant enough to cause the plan or health insurance coverage to cease to be a grandfathered health plan, leaving that question to be addressed by further regulatory guidance. The following is an overview of some of the highlights presented in this article:

• DEFINITION OF A GRANDFATHERED HEALTH PLAN

• DISCLOSURE AND RECORDKEEPING REQUIREMENT

• CHANGES CAUSING CESSATION OF GRANDFATHER STATUS

• ADDING NEW EMPLOYEES THROUGH HIRING, MERGERS AND ACQUISITIONS

• TRANSITION RULES

• GUIDANCE CONCERNING STAND-ALONE RETIREE PLANS

• ISSUE NOT RESOLVED

• LOOKING FORWARD

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Womble Carlyle Sandridge & Rice, LLP | Attorney Advertising

Written by:

more+
less-

Womble Carlyle Sandridge & Rice, LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×