Under interim final regulations for the Affordable Care Act (ACA) that were issued last year, grandfathered group health plans—those in place on March 23, 2010, when the law was enacted—don’t have to comply with substantial portions of the health care reform law.
But there’s a catch: Those plans are limited in the changes they can make. Otherwise, they lose their grandfathered status. And if that happens, they’re subject to all the ACA’s requirements. (For background, see www.theHRSpecialist.com/healthlaw.)
Now the U.S. Department of Labor and the IRS have issued guidance on exactly what health-plan changes can occur without threatening grandfathered status, as well as changes that will send a plan back to square one. (Read the full government guidance at www.dol.gov/ebsa/faqs/faq-aca6.html.)
To keep grandfathered status
First, what employers can do. Generally, the feds are giving grandfathered plans a little more wiggl...(register to read more)