\. 

Health Care Center 


3525 Mitchell Road 

P.O. Box 608 

Bedford, IN 47421 

August 11,2010 

Office of Consumer Information and Insurance Oversight 


Department of Health and Human Services 


Attention: OCII0-9991-IFC 


P.O. Box 8016 


Baltimore, MD 21244-1850 


-"-"'~ Re: ~ItfterimHnlil~R1tIFf6rGrdtip ~lte-alth"Plans and::Bealth..lt1surance,ee)Verage~el:ating·to-" o~""" "-"" ~ , 

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 (PPACA). 

Webelieve·thatevery effort should be madeto increase the number of individuals covered.by 

PPACA,especially .as ofJ~~ary. 1,'4014 ~hen mosi' ofthe reform components (Insurancei ... 

Exchanges, Subsidies, Tax Credits, etc.) come into·plaY. . . . ,.'~ "'. ".' ; . 

~,,":t .:,.~ ..;:"\-.''".•,* • w .!'. .~'''' r';" 

Tlie·Ru1e·provides the seventriggers.that would revoke the grandfathered status of a group 

health plan: ' ' '. 

• Mergers or acquisitions with the sole intention ()f maintaining grandfather status 

• Elimination of substantially all benefits to treat a particular condition 

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

• Any change to coinsurance level 

• Fixed-amoun~ cost;;;sharing (Deductibles/60P) Inflation +15%· . I 

• 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 (i.e. outpatient services) but retained the copayment level for primary 

e,<iiedoctor visits, does thatm,ean a los~of grandfather status? Clarity will be <?ritical both for the 

employer and the employee. . .' .... . .' ..' -,':'.. ' .... 

. '. ,. . ', .. .: • ," , 'f' '. t . . ~ . r •. • ,t.... ,~\ 

j The average.qms'umer, h~$ a,brpad definition, of"bene~ts.". Con~u~ers, viy~ .t!t~ir healthplan 

-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 the 

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 of the grandfather 

status. 

• 	

Even 

insured 

Change 

ifthe 

to 

in 

self-funded) 

issuer 

benefit 

or 

structure 

third-party 

of a 

administrator 

group health plan 

(FPA) 

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 legal 

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 oftheir 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 of January 2014 based on the current rules. While we understand 


thedifficulty"involvedin luaking"changes; ·creating-another large sub."'f'Gpulation'Gfexduded. . 


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 reduction 


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 

-i 
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. 

Karl P. Buch, D.C. 

Health Care Center 

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