A three-judge panel at the U.S. Court of Appeals for the D.C. Circuit recently rejected efforts by West Virginia to sue the Obama administration over Affordable Care Act “grandmothering.”
“Grandmothering” refers to the flexibility the administration gave states to decide whether to require major medical plans sold between March 23, 2010, and Jan. 1, 2014, to comply with all ACA underwriting and product design rules after Jan. 1, 2014, or whether to let plans that weren’t fully compliant stay in effect after that date.
Originally, the ACA was going to let individuals and employers keep plans in effect before March 23, 2010, mostly the same even after Jan. 1, 2014, through a “grandfathering” provision. The Obama administration gave states the option of using the grandmothering strategy in 2013, after consumers, lawmakers and state insurance regulators complained about insurers sending out large waves of individual health insurance cancellation notices for 2014.
The appeals court panel found that West Virginia lacked the standing to challenge the administration action because it had suffered only political discomfort as a result of the action, not an injury-in-fact, according to an article by Marcia Coyle in The National Law Journal, a publication owned by ALM. ALM also owns LifeHealthPro.com.