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The Departments of Labor, Health and Human Services, and Treasury announced a final rule on December 11 that amends the requirements for grandfathered group health plans and grandfathered group health insurance coverage to allow changes to certain cost-sharing requirements while preserving their grandfather status.

The final rule does the following, among other things:

  • Clarifies that grandfathered group health coverage that is a high deductible health plan (HDHP) may increase fixed-amount cost-sharing requirements, such as deductibles, to the extent necessary to maintain its status as an HDHP without losing grandfather status.
  • Amends the definition of maximum percentage increases to now rely on the premium adjustment percentage rather than medical inflation, helping plans and issuers better account for changes in the costs of health coverage over time.

While the final rule will go into effect January 14, 2021, it is applicable beginning June 15, 2021, or six months after publication. The prepublication version of the final rule can be found here.