A story in today’s Washington Post highlights the importance of associations in being involved in the regulatory process. Many of the provisions of the Patient Protection and Affordable Care Act have regulatory requirements, and as deadlines in the legislation approach, it is critical that impacted nonprofits make their concerns known to the appropriate agencies as they write regulations and rules.
The example the article uses is the exemption for existing employer-provided plans from some requirements under the new health care law, or so-called “grandfathered plans”. If an employer has an existing plan for employees in place in 2010, then according to the bill the plan would be exempt from some provisions including the prohibition on insurers charging co-payments and annual limits on out-of-pocket costs.
The key, however, is how federal regulators will define what changes an insurance plan can make before it loses its grandfathered status. If an insurer raises rates or an employer changes from one insurance plan to another, theoretically this could cause an employer’s plan to lose grandfathered status and be required to comply immediately with a host of new provisions.
The regulations should be written soon, as many businesses are planning for their 2011 open enrollment season. The concern is that any change done at the end of 2010 could unwittingly endanger an employer’s status for 2011 and beyond.
You can follow the implementation of the health care provision at this site, as well as other associations such as the Society for Human Resource Management.
