Grandfathered Plans

[Chaz]

The interim final rule re grandfathered plans under PPACA states:

if an employer or employee organization enters into a new policy, certificate, or contract of

insurance after March 23, 2010 (because, for example, any previous policy, certificate, or

contract of insurance is not being renewed), then that policy, certificate, or contract of insurance

is not a grandfathered health plan with respect to the individuals in the group health plan.

Most employer group plans that I am familiar with enter into insurance contracts for one (sometimes two) years. For a calendar year plan, the policy, certificate, and contract all will state that the plan starts on January 1, 20XX and ends the following December 31. Is a rollover of the contract to the next year considered a "renewal" and not a "new policy, certificate, or contract of

insurance" such that the grandfathering status can remain (assuming nothing else in the policy changed)? Or will all policies lose the possibility of grandfathering upon their expiration date?

I think the former result is the correct one, but the language isn't clear to me and I have had one health insurance expert tell me that the latter is the correct interpretation.

Does the result change if the insurer modifies the language of the rollover communication to state that it is a renewal and not a new policy, etc.?

Thoughts?

[Chaz]

I still haven't resolved this question. Does anyone have any thoughts?