RETIREE-ONLY PLANS AVOID HEALTH CARE REFORM

Retiree-Only Plans, Dental & Vision Plans and Health FSAs

The preamble to the grandfathered plan regulations issued by the IRS, DOL and HHS clarifies a previously ambiguous part of health care reform by stating that retiree-only plans and HIPAA excepted benefits (stand-alone dental, vision, health FSAs), regardless of whether they meet the requirements to be considered “grandfathered,” are generally exempt from the same requirements for which grandfathered plans are exempt (see exemption list for grandfathered plans) and, in addition, are exempt from:

• prohibition of lifetime and annual limits
• prohibition on rescission of coverage other than for fraud
• extension of dependent coverage to adult child up to age 26 (this exemption is broader than the one for grandfathered plans)
• distribution of uniform summary of benefits and 60 day advance notice of any material change
• prohibitions of pre-existing condition exclusions
• prohibition of waiting periods exceeding 90 days

Contact Us

If you would like more information or assistance regarding retiree-only plans or HIPAA excepted benefits, please contact a member of Oppenheimer’s Employee Benefits Group.
  

This alert is a copyrighted publication produced by Oppenheimer Wolff & Donnelly LLP. The information contained in this alert is of a general nature and is subject to change. Readers should not act without further inquiry and/or consultation with legal counsel.