Agencies Propose Rule to Increase Flexibility for Grandfathered Group Health Plans

The Departments of Treasury, Labor, and Health and Human Services on Friday issued a proposed rule to amend the requirements for grandfathered group health plans to preserve their grandfather status while offering new flexibility to make changes to their plan designs.

The proposed rule would clarify that grandfathered plans that are HSA-qualified may increase their deductibles to the extent necessary to maintain their status as an HSA-qualified plan without losing grandfather status. This change will allow enrollees in these plans to remain HSA-eligible. Comments on the proposal will be due by Aug. 14.