Employers are offering creative perks to attract and retain today’s workers.
Plus all the HR resources you need to be more efficient and effective this fall!
Prepare for your exam with the guidance of a SHRM-certified instructor in Boston, Oct. 24-26.
September 27 - 28.
Long-awaited guidance defining what is a “grandfathered health plan” under health care reform was issued in the form of
interim final rules by the U.S. departments of the Treasury, Labor, and Health and Human Services and published in the
Federal Register on June 17, 2010. (For an overview of the regulations, see the
HR News report "Rules Would Restrict Employer Changes to Health Care Plans.")
The regulations carve out a broader exemption from many of the new health care reform mandates and restrictions for insured health care plans subject to collective bargaining agreements, so long as these plans existed when the health care reform law was enacted. The regulatory provisions that relate to these union-negotiated plans are described below.
There is no special grandfathering rule for self-insured collectively bargained plans. Therefore, a self-insured plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers is only a grandfathered health plan to the extent that it satisfies the requirements described above and does not make any changes that result in the loss of grandfathered health plan status.
The guidance clarifies that there is no delayed effective date for health care reform requirements that apply to collectively bargained plans. Grandfathered collectively bargained health plans are subject to the same requirements as other grandfathered health plans, so changes may be required to bring a collectively bargained health plan into compliance with health care reform in the middle of a collectively bargained agreement period.
Susan M. Nash, Amy M. Gordon, Jamie A. Weyeneth and Elizabeth A. Savardare all partners with the employee benefits and pensions practice group of global law firm
McDermott Will & Emery LLP. This article is excerpted from a longer
analysis of the interim final rules by the authors.
© 2010 McDermott will & Emery LLP. All Rights Reserved.
This article should not be construed as legal advice
is an online editor/manager for SHRM.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
The application deadline is October 21
SHRM’s HR Vendor Directory contains over 3,200 companies