Employee Benefits Compliance

Health Care Reform: Rescissions

What constitutes a rescission under Health Care Reform, and how does this affect employers?

Recently, we have seen various instances where problems have arisen because employers terminate coverage for what they consider valid reasons and do not realize that the termination constitutes a “rescission” under Health Care Reform and thus requires 30 days prior written notice.

This bulletin attempts to clarify the distinction. It also includes a matrix that outlines several typical examples of when coverage can be terminated retroactively and when termination must be prospective only.

To view the full bulletin regarding this topic, click here and select the bulletin labeled “2011_05_06_Rescission.”