Health Care and Life Sciences > Health Reform Resource Center > Interim Final Rule Re Grandfathered Health Plans
22 Jun '10

The departments of the Treasury, Labor and Health and Human Services have released an Interim Final Rule clarifying under what circumstances grandfathered health plans, which are exempt from certain health care reform requirements, will lose this status and be required to comply with insurance provisions such as providing coverage for approved clinical trials.  The rule restricts grandfathered plans’ ability to increase co-pays and deductibles, reduce benefits and raise co-insurance charges as well as prohibiting these plans from adding or tightening annual limits and changing insurance companies.  Grandfathered plans will be able to make cost adjustments to keep pace with inflation and may make changes to premiums without jeopardizing their status.  Opponents of the rule argue that its strict requirements will cause a significant percentage of plans, especially in the small group market, to lose grandfathered status over the next few years.

Click here to view a fact sheet and here to view a question and answer sheet about the grandfathered health plans.