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.
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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.
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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.
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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.
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