Administration Repudiates "Leaked" Grandfather Plan Regulations

Mark Stember, JD Kilpatrick Stockton

From the KS Health and Welfare Team:

Yesterday, we became aware of draft grandfather plan regulations that apparently had been leaked to various firms in DC.  The draft regulations addressed grandfathered plans and retiree-only plans.  As anticipated, the draft regulations upheld the retiree-only plan exception (meaning that retiree-only plans would not be required to comply with health care reform at all), but were not kind to grandfather plans.  In fact, practically any change would have meant the loss of grandfathered status. 

That was yesterday, and today is a whole new day in Washington.  After word got out about the "draft" regulations, many interest groups called the administration to assail the "draft" regulations today.  The administration is now backpedaling and saying that these regulations are only a "draft" that is still being revised.  It is unclear whether this was actually a planned leak to test the waters, or it in fact was a real leak.  In any event, you can read more about this issue at the Associated Press link below.  Due to this development I think the regulations will actually be kinder to grandfather plans, but may take a little longer to actually be released.

Mark Stember