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Affordable Care Act Grandfathered Multiemployer Plan


Guest KHanvey

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Guest KHanvey

Is anyone aware of whether an entire mutliemployer plan would lose its grandfathered status under the Affordable Care Act if only one employer changed its contribution rates by more than what is permitted under the Act's regulations? Alternatively, could each employer be viewed as a separate "plan" or "benefit package" such that only the affected employer would lose grandfathered status and be required to comply with all of the Act's various provisions, but the employers that did not change their contribution rates could maintain their grandfathered status under the original plan?

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That's a great question. There hasn't been a clear guidance from the regulators. We've considered that here and have concluded that it likely depends on the plan structure (we've had different answers for different funds).

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