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WASHINGTON—Retiree-only health care plans would be “grandfathered” and exempt from key requirements mandated by the new health care reform law, according to draft regulations prepared by the Internal Revenue Service and the departments of Labor and Health and Human Services.
Among other things, the exemption, if finalized, would mean retiree-only health care plans would not have to comply with such health care reform law requirements banning lifetime dollar limits and that coverage be extended to adult children up to age 26.
The draft regulations also deal with numerous other situations detailing when existing health care plans would have to comply with requirements laid down by the health care reform law.
It isn't known when the regulations will be officially released, though benefit consultants say government sources have told them that an official release could be soon, possibly in a matter of days.