In 2010 and 2011, a number of actions have been taken by plan sponsors and insurers of group health plans to comply with the first round of health care reform changes. Plans were required to extend coverage to children until they turn twenty-six (26). Insurance companies were prohibited from rescinding coverage, except in limited circumstances. Most plans had to provide first dollar coverage for preventive care. Lifetime limits on “essential health benefits” were eliminated and annual limits on benefits were restricted. A second round of health care reform initiatives are required in 2012 under the Patient Protection and Affordable Care Act (“PPACA”). This Alert will briefly summarize what plan sponsors and insurers can expect for 2012.
