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December 23, 2010

HRB 28 - Implementation of Salary-based Discrimination Rules Delayed

Released December 23, 2010I Download as a PDF

December 23, 2010 --  The Patient Protection and Affordable Care Act (PPACA) imposes salary-based discrimination rules on insured health plans (see our CBIZ Bulletin, Salary-based Discrimination Rules Applicable to Fully Insured Group Health Plans). The IRS, with the endorsement by the Departments of Labor and Health and Human Services, has just issued Notice 2011-01, delaying the effective date of these rules. No penalties will be imposed until after implementing regulations are issued.

This position is being taken due to the density of these rules and the need for guidance before they can be properly implemented. This should come as a nice holiday gift to those dealing with these complexities.

Remember, the salary-based discrimination rules applicable to self-funded health plans that have been in effect for 30 years, are not changed by the PPACA, nor are they changed by this guidance, and remain in full force and effect.

 

About the Author: Karen R. McLeese is Vice President of Employee Benefit Regulatory Affairs for CBIZ Benefits & Insurance Services, Inc., a division of CBIZ, Inc. She serves as in-house counsel, with particular emphasis on monitoring and interpreting state and federal employee benefits law. Ms. McLeese is based in the CBIZ Leawood, Kansas office.

 

The information contained herein is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. The information contained herein is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein. As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

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