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Legal Issues

New Regulations Define "Grandfathered Status" - June 17, 2010

On June 14, 2010 the United States Health & Human Services, Department of Labor and Department of Treasury issued interim rules further defining "grandfathered status" for purposes of the Patient Protection & Affordable Care Act (the "Act").  These rules are important because several of the new health care reform provisions in the Act are not applicable to "grandfathered plans."  


The Act defines a grandfathered plan as simply a plan that was in place on March 23, 2010; however, it was silent on what changes a plan could make and still retain its grandfathered status.  The new rules released Monday give us initial guidance on this issue.  Below is a summary of the new rules and how we anticipate they will impact employer-sponsored group health plans.  Note, the impact of the new rules on individual plans is beyond the scope of this summary.