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AUG 2 6 

LEGAL PROCESSING DMSION 

,PUBLICATION ~ REGULATIONS 

BRANCH 

As of: August 26, 2010 

Received: August la, 2010 

Status: Posted 

Posted: August 26, 2010 

Tracking No. 80b2d334 

PUBLIC 

SUBMISSION Comments Due: August 16, 2010 

Submission Type: Web 

Docket: IRS-2010-0010 

Group Health Plans and Health Insurance Coverage Rules Relating to Status as a Grandfathe'ed 

Health Plan Under the Patient Protection and Afforable Care Act 

Comment On: IRS-2010-001O-0001 

Group Health Plans and Health Insurance Coverage: Interim Final Rules for Relating to Statu; as 

a Grandfathered Health Plan under the Patient Protection and Affordable Care Act 

Document: IRS-201O-001O-0455 


Comment on FR Doc # 2010-14488 


---------------------------------------------------------------.... 

Submitter Information 

Name: Vincent G Domingo 


Address: 


Chicago, IL, United States Minor Outlying Islands, 


Submitter's Representative: ICS 


Organization: Franklin Park & Gutrich Chiropractic 


Government Agency Type: State 


Government Agency: ICS 


General Comment 

See attached file(s) 

---------------------------------------------------------------.... 


Attachments 

IRS-2010-0010-0455.1: Comment on FR Doc # 2010-14488 

https:llfdms.erulemaking. netlfdms-web-agency IcomponentlsubmitterInfoCoverPage?Call=... 8/26/2010 
August 10, 2010 

Office of Consumer Information and Insurance Oversight 

Department ofHealth and Human Services 

Attention: OCII 0-9991-IFC 

P.O. Box 8016 

Baltimore, MD 21244-1850 

Re: Interim Final Rule for Group Health Plans and Health Insurance Coverage Relating to 

Status as a Grandfathered Health Plan Under the Patient Protection and Affordable Care Act 

Below are our comments regarding the Interim Final Rule for Group Health Plans and Health 

Insurance Coverage Relating to Status as a Grandfathered Health Plan Under the Patient 

Protection and Affordable Care Act (PP ACA). 

We believe that every effort should be made to increase the number of individuals covered by 

PP ACA, especially as of January 1, 2014 when most of the reform components (Insurance 

Exchanges, Subsidies, Tax Credits, etc.) come into play. 

The Rule provides the seven triggers that would revoke the grandfathered status of a group 

health plan: 

• Mergers or acquisitions with the sole intention of maintaining grandfather status 

• Elimination of substantially all benefits to treat a particular condition 

• Elimination of benefits for any element necessary to eliminate or diagnose a condition 

• Any change to coinsurance level 

• Fixed-amount cost-sharing (Deductibles/OOP) Inflation +15% 

• Co-payments (Medical Inflation +15% or $5 adjusted for medical inflation) 

• Employer contribution (> 5% reduction in Employer Contribution) 

While relatively straightforward, these guidelines may still result in some confusion to the 

marketplace in their application. For example, if an employer raised the copayment level beyond 

the maximum in one area (Le. outpatient services) but retained the copayment level for primary 

care doctor visits, does that mean a loss of grandfather status? Clarity will be critical both for the 

employer and the employee. 

The average consumer has a broad definition of "benefits." Consumers view their health plan 

beyond the covered benefits, cost sharing, and the contribution levels associated with the plan. 

Other components of health care services can have a significant impact on the individual 

employee, which can result in a change to their plan including: 

• A "substantial change" to the provider network 

Consumers believe their provider and the provider network associated with any plan is an 

integral part of the health care benefits provided by the employer. A termination of a 
hospital system or specific provider group sometimes has significant impact on th(~ 

employee population and should be viewed as a substantial change to the plan itself. As a 

guideline, we would suggest any change in the provider network impacting over 50% of 

the employee population (nationally or locally) should result in a loss ofthe grandfather 

status. 

• 	

Even 

Change 

insured 

if the 

to 

in 

self-funded) 

issuer 

benefit 

or 

structure 

third-party 

of a 

administrator 

group health plan 

(I'P A) 

remains 

(including 

largely 

moving 

the same, 

from fullya change in 

administration of the plan requires new communication, new processes, and new 

requirements on the part of an employee and the employer. Moving from a fully-insured 

to a self-funded status or changing administrators requires new processes and legall 

agreements for the group health plan. These transitions are not daily or regular events and 

should be considered a change in the group health plan. 

• 	 Significant change in care management/authorization requirements 

The processes consumers need to follow to receive care are a significant component of 

their perceptions of their health benefits plan. Changing notification requirements, 

requiring referrals, or other care management strategies involved in the delivery of care 

should also be considered as a change to the plan. This may prevent group health plans 

from maintaining their grandfather status by not necessarily eliminating a benefit, but 

making it difficult to receive by changing the care management process around it. 

Even by the most optimistic estimates, a substantial portion ofthe employee population will 

remain outside the PPACA as ofJanuary 2014 based on the current rules. While we understand 

the. difficulty involved in making change, creating another large sub-population of exclud(~d 

individuals will only add to costs, increase confusion, and mitigate the potential impact ofthe 

legislation. This only adds to the uncertainty surrounding the $143 billion in deficit reduc1ion 

projected by the Congressional Budget Office (CBO) when the process began. 

We believe that any changes related to the areas listed above should also result in a loss of 

grandfather status as these are changes that heavily impact a patient's healthcare benefits. The 

Rule needs to be clear, reasonable, and with no ambiguities involved in determining whether a 

group health plan is "in or out." The decisions we make today will determine the outcomes for 

tomorrow. We may need to make some difficult decisions to create a sustainable health care 

system that will support a growing economy in the future. That means getting as many citizens 

across the country participating at the beginning to make it work and delivering on its promises 

to retain their support. 

Thank you for the opportunity to comment on this regulation. 

Vincent Domingo DC, CSCS, FIAMA 

CEO Franklin Park & Gutrich Chiropractic