Effects of the Supreme Court Ruling on the Patient Protection and Affordable Care Act (PPACA)
- Group Health Plans and Health Insurance Coverage Relating to Status as a Grandfathered Health Plan Under the Patient Protection and Affordable Care Act; Interim Final Rule and Proposed Rule [PDF 239K]
On Thursday, June 28, 2012 the U.S. Supreme Court issued a ruling upholding provisions of the Patient Protection and Affordable Care Act (PPACA). Although the ruling has only recently been announced, the Division of Retirement and Benefits, in conjunction with the Department of Law undertook a review of the state's health plans in 2010 following passage of PPACA. Since that time, all required plan provision changes have been implemented in accordance within the prescribed timeline.
Active Employee AlaskaCare
The Select Benefits plan is a grandfathered health plan under PPACA. This means that the plan is exempt from some provisions of the act. However the plan is required to adopt certain provisions of the act. For example, prior to the passing of PPACA, the Select Benefits plan was already compliant in several aspects including no lifetime limits, waiting periods less than 90 days, and prohibiting of coverage recession. Since PPACA passed in March, 2010 the Select Benefits plan has extended coverage to dependents up to the age of 26, modified the Health Flexible Spending Account (HFSA) Over the Counter medications coverage, and changed the HFSA maximum contribution limit.
One provision the Select Benefits plan was not required to comply with was 100% coverage of preventative care services, however these services were voluntarily added to the plan beginning July 1, 2012.
According to the U.S. Departments of Health and Human Services (HHS), Labor, and Treasury which issued joint regulations June 14, 2010, the AlaskaCare Retiree Health Plan's Public Employees' Retirement System (PERS), Teachers' Retirement System (TRS), Judicial Retirement System (JRS), and Elected Public Officers Retirement System (EPORS) health plans are not subject to PPACA. The U.S. Supreme Court decision had no effect on this regulation, and the AlaskaCare Retiree plan continues to be exempt from PPACA provisions.