Transportation55

Under the health care reform legislation signed into law in March 2010, a number of changes in the way employers and the group health plans they sponsor administer benefits take effect on January 1, 2011.  Employers are well-advised to evaluate their plans now to ensure they are in compliance with the new law. 

Among the changes taking effect on January 1, 2011, employers with group health plans operating on a calendar-year basis must (1) eliminate pre-existing condition exclusions for dependent children who are under age 19; (2) allow coverage for adult dependent children up to age 26; (3) restrict annual limits on coverage in accordance with the regulations and eliminate lifetime maximum limits on coverage of essential benefits; and (4) eliminate coverage rescissions in cases not involving fraud.  Regulations published by the Departments of Treasury, Labor, and Health and Human Services also require plans to give notice by January 1, 2011 of a re-enrollment opportunity to those dependents under age 26 whose group health coverage was terminated because of an age restriction.

Although many of the more highly-publicized changes to group health plan administration take effect beginning in 2014, employers should become familiar with the new requirements now to ensure their plans comply with the more immediate deadlines.