New Guidance on Grandfathered Health Plans


On June 14, 2010, the Department of Health & Human Services, in conjunction with the Department of Labor and the Treasury Department, issued interim final regulations relating to retaining status as a grandfathered health plan ("Grandfathered Plan")* under the Patient Protection and Affordable Care Act of 2011, and the Health Care and Education Reconciliation Act of 2010 (collectively, the "Health Care Reform Act"). Grandfathered Plans are exempt from a number of the new insurance reforms under the Health Care Reform Act, but are required to comply with a subset of the Health Care Reform Act's provisions ensuring access to coverage with certain protections. See our April 15, 2010 Benefits Alert for a discussion of the applicable grandfathering provisions. These interim final regulations attempt to clarify some of the issues remaining regarding a plan's status as grandfathered under the regulations.

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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.

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