• Health Care Reform Grandfathering Rules Require Careful Scrutiny by Plan Sponsors
  • July 1, 2010 | Authors: John J. Cannon; Jeffrey P. Crandall; Kenneth J. Laverriere; Doreen E. Lilienfeld; Linda E. Rappaport
  • Law Firm: Shearman & Sterling LLP - New York Office
  • Since the enactment of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (collectively, the “Act”), plan sponsors have been concerned that a relatively minor amendment to a group health plan could result in the loss of the plan’s grandfather status under the Act. The interim final rules (the “Grandfathering Rules”) issued on June 14, 2010 by the Departments of Health and Human Services (“HHS”), Labor and Treasury (collectively, the “Departments”) address, and in some cases confirm, this concern and suggest an intent to reduce the number of grandfathered plans. The Grandfathering Rules are effective immediately.