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.


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