The Department of Labor issued Part VI of Health Care Reform Frequently Asked Questions which addressed whether particular changes would cause a plan to relinquish grandfather status, including:
(1) examples of "bona fide employment-based reasons" that will not cause a plan to lose its grandfather status;
(2) changes in cost sharing when a generic alternative becomes available for a particular prescription drug that previously had no generic alternative - will not result in loss of grandfather status;
(3) specific example of the interaction of value-based insurance design (VBID) and the no cost-sharing preventive care services requirements - will not result in loss of grandfather status;
(4&5) if a plan amendment is adopted that will cause the plan to lose its grandfather status, the loss of status occurs on the date an amendment becomes effective, regardless of when it is adopted;
(6) a plan that bases the employer contribution amount on a formula will not lose grandfather status if the formula does not change, but the total cost of coverage increases and results in a more than 5 percent decrease in the employer's contribution rate (compared to what it was on March 23, 2010).
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