Group Health Plan Discrimination Rules

In our post of 10/29, we outline the new discrimination penalties imposed on discriminatory group health plans.  These rules impact PRM plans for select employees.  Grandfathering is important and is generally for plans in effect prior to March 23, 2010.  Unlike other grandfathering provisions, the regulations list a series of actions that will cause the grandfathering to be forfeited.  The first of those was changing carriers.  However, the regulations have been amended to eliminate that condition.  Therefore, employers can change carriers and not lose grandfathering so long as the terms of the coverage do not change in a prohibited way (see earlier notes).  This change was made given the number of carriers that are ceasing to provide current plans.