Grandfathered Plan Status in Jeopardy

June 14, 2010

Obama Administration working on regulations that could cause many plans to lose their grandfathered status

Heath and Human Services is working on regulations to limit the number of plans that will remain "grandfathered" eligible. The new requirements being drafted by HHS could cause plans to lose their exempt status if they increase employees' costs from 20% to 30% or increase deductibles by more than a certain amount. President Obama is quoted several times during the healthcare debate as saying "people who like their current coverage would be able to keep it." The AP is reporting that in three years, a majority of workers will be in new plans subject to federal regulation.

The CMS temporary hold on Medicare claim reimbursements expires Tuesday and Congress is not expected to vote on any "fix" for the twenty-one percent reimbursement cut prior to the deadline. Doctors will start to see the decreased reimbursements this week. Many may have to re-evaluate their business models to stay in business.

To read more on today's Health Care issues, check out the June, 14, 2010 NAHU Newswire.

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