Labor Market

What provisions of the new law apply to collective bargaining agreements (CBAs)?
CBAs with fully-insured plans are deemed "grandfathered plans" under the new law. Certain changes, including no lifetime limits, no rescissions, extension of dependent coverage to age 26, and no pre-existing conditions applicable to persons under age 19, apply to grandfather plans effective for the first plan year that begins on or after September 23, 2010. Therefore, these changes will apply to CBA plans for the first plan year beginning on or after September 23, 2010. Other changes that are specifically applicable to grandfathered health plans will apply to CBA plans in the future.
When is a CBA considered "terminated" under the new law?
Each agreement is governed by its own terms and conditions. For some CBAs, agreements can go on for several years. Carefully review the text of the agreement to be sure when the agreement is terminating and consult legal counsel for specific guidance.
Is the new law applicable to both fully insured and self-funded CBAs?
Yes. Although CBAs with fully-insured plans receive special treatment under the law (see above), CBAs with self-funded plans must comply with the law in the same manner as any other self-funded plan.

This information is provided for informational purposes only and does not constitute legal advice. Please consult your legal counsel regarding your specific situation.

Please note that this content is only intended to describe national health care reform requirements under the Patient Protection and Affordable Care Act (PPACA). It does not address Massachusetts law requirements or the potential impact of Massachusetts law on federal PPACA requirements.

For purposes of PPACA implementation, Blue Cross Blue Shield of Massachusetts assumes the plan year is the policy year, unless an account notifies us otherwise.