The U.S. Treasury Department and IRS, along with the Labor Department and Department of Health and Human Services, today jointly released for publication in the Federal Register final regulations (T.D. 9928) regarding grandfathered group health plans and grandfathered group health insurance coverage.
The final regulations amend current rules “to provide greater flexibility for certain grandfathered health plans to make changes to certain types of fixed amount cost-sharing requirements without causing a loss of grandfather status under the Patient Protection and Affordable Care Act.”
Read the final regulations [PDF 395 KB] (26 pages as published in the Federal Register on December 15, 2020)
Regulations were proposed in July 2020 to amend the 2015 final rules to provide greater flexibility for grandfathered group health plans and issuers of grandfathered group health insurance coverage to make certain changes without causing a loss of grandfather status. Those proposed regulations included changes to:
The preamble to today’s final regulations states they “finalize the 2020 proposed rules without substantive change.”
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.