Medical Plan Eligibility for Young Adults

Post questions that you think others might help you with that are not already in other forums.

Medical Plan Eligibility for Young Adults

lkm
Joined: October 16th, 2012, 6:00 pm

October 16th, 2012, 6:18 pm #1

Under the Affordable Care Act, health plans, with the temporary exception of "grandfathered" plans until 2014, are supposed to cover children until turning 26. A-L management retiree plan is still going by old eligibility requirements. Benefits Center says the Act does not apply to group plans where all participants are retirees. Is A-L's management retiree plan considered a "grandfathered" plan? or is it true that because all the participants are retirees our plan is exempt from the Act?
Last edited by lkm on October 18th, 2012, 3:23 pm, edited 1 time in total.
Quote
Like
Share

Joined: June 9th, 2008, 9:40 pm

October 17th, 2012, 6:08 pm #2

I believe because the ALU plan is a self-insured plan not an insurance health plan it is exempt from the ACT.
Quote
Like
Share

lkm
Joined: October 16th, 2012, 6:00 pm

October 18th, 2012, 3:21 pm #3

Thank you. I also just read the Fall LRO Newsletter and see that the topic was discussed at the recent LRO meeting with ALU HR reps. FYI I am covered by the United Healthcare Enhanced Medical plan, family option (with no Medicare) and have a young adult dependent graduating from college in May 2013.
Quote
Like
Share

lucentretirees
Site Admin
Joined: December 27th, 2006, 11:00 pm

October 18th, 2012, 10:18 pm #4

Plans that are "retiree only" are generally exempt from the provisions of the PPACA. As one commentator puts it:
"Retiree only plans are excluded from all the group health care standards added by Affordable Care Act." Alcatel-Lucent was specifically mentioned in a Wall Street Journal article (http://www.lucentretirees.com/Benefits ... t2010.pdf).
Be sure to check with your insurer on this interpretation.
Quote
Like
Share