Health Care Legislation: Amendment to Regulations Implementing “Grandfather” Provisions

Sullivan & Cromwell LLP - November 18, 2010

On November 15, 2010, the Departments of Health and Human Services, Labor and Treasury jointly published an amendment to the interim regulations implementing the “grandfather” provisions of the Patient Protection and Affordable Care Act, which were originally promulgated June 14, 2010. The amendment permits a group health plan (or its sponsor) to enter into a new policy or change insurers without ceasing to be a grandfathered plan so long as the plan does not make other changes that would cause it to cease to be a grandfathered plan (i.e., no impermissible changes to benefits or other plan terms).