In an amendment to previously issued guidance, the new rules issued by Departments of Health and Human Services, Labor and the Treasury (the Departments) provide that an insured group health plan does not lose its “grandfathered” status merely by changing issuers or insurance contracts. Although the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010 (together, the Health Care Reform Law) generally apply to all group health plans and health insurance coverage going forward, certain plans that were in effect on March 23, 2010, may be “grandfathered” and exempt from a number of the new requirements. The Departments issued regulations on June 17, 2010, that outlined the steps that group health plans must take to maintain their grandfathered status. Under the June 2010 guidance, if a fully insured group health plan changed insurance carriers or entered into a new policy, certificate or contract after March 23, 2010, the plan automatically lost its grandfathered status.

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Source: Health Plans: What's Next? Drinker Biddle's Health Care Reform Update
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