• Transitioning to Health Care Reform: So You Think You'd Like Your Plan To Be Grandfathered...
  • July 1, 2010 | Authors: Kathleen O'Connor Adams; Gary D. Ammon; David Levin; Howard J. Levine
  • Law Firms: Drinker Biddle & Reath LLP - Chicago Office ; Drinker Biddle & Reath LLP - Philadelphia Office ; Drinker Biddle & Reath LLP - Washington Office ; Drinker Biddle & Reath LLP - Chicago Office ; Drinker Biddle & Reath LLP - Philadelphia Office
  • The grandfathered plan guidance we have been waiting for has finally arrived! The Department of Health and Human Services, the Department of Labor’s Employee Benefits Security Administration and the Department of the Treasury recently issued much-needed guidance on the “grandfathered” plan provisions of the Patient Protection and Affordable Care Act (PPACA) and the related Health Care and Education Reconciliation Act of 2010 (together, the Health Care Reform Law). Although the Health Care Reform Law generally applies to all group health plans and health insurance coverage going forward, certain existing plans and coverage are deemed “grandfathered” and exempt from a number of the new requirements. The regulations, published in the Federal Register on June 17, 2010, outline the steps that group health plans must take to maintain their grandfathered status and clarify what changes a grandfathered plan can make without jeopardizing its grandfathered status. The regulations also provide helpful “transitional rules” under which plans that adopted changes prior to the issuance of these regulations may be able to preserve their grandfathered status.