401. Are grandfathered health insurance plans exempt from nondiscrimination and all health care reform requirements?cjumprcline202005-04-08T19:45:00Z2015-05-05T19:15:00Z2015-05-05T19:15:00Z22451402Hewlett-Packard Company1131644142007-10-05T00:00:00ZTaxFactsDefaultArticleSite Map/Life Insurance/Income Taxation/Proceeds/Living/Disposition/Sale or Purchase of a Contract115140262-00-tf1.xml263.00;#2099;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1If the owner of a life insurance or endowment contract sells the contract, such as in a life settlement, what are the income tax consequences to the seller?74200.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T23:41:49Z0f08e536-ecc3-4201-b7c3-d3285df31d4d|1fc94bdb-a5c9-44ee-a003-d812c170264f|2d6aa32b-c56a-4444-94fa-2a45d3682ed4401. Are grandfathered health insurance plans exempt from nondiscrimination and all health care reform requirements?Yes and no. Although grandfathered health insurance plans are exempt from many requirements, they are not exempt from all health care reform requirements. Grandfathered plans will be exempt from the health insurance nondiscrimination rules when those are published. Grandfathered plans are subject to the following mandates:(1)Prohibition of lifetime benefit limits;(2)No rescission except for fraud or intentional misrepresentation;(3)Children, who are not eligible for employer-sponsored coverage, covered up to age twenty-six on a family policy, if the dependent does not have coverage available from his or her employer;(4)Pre-existing condition exclusions for covered individuals younger than nineteen are prohibited; and(5)Restricted annual limits for essential benefits.Grandfathered health plans are exempt from the following requirements that apply to new and non-grandfathered health plans:(1)No cost-sharing for preventive services;(2)Nondiscrimination based on compensation;(3)Children covered up to age twenty-six on family policy regardless of whether a policy is available at work. Grandfathered status for the adult dependent coverage ends on January 1, 2014;(4)Internal appeal and external review processes;(5)Emergency services at in-network cost-sharing level with no prior authorization; and(6)Parents must be allowed to select a pediatrician as a primary care physician for their children and women must be allowed to select an OB-GYN for their primary care physician.