Foster Swift Employment, Labor & Benefits E-News
January 11, 2011
Recently published IRS Notice 2011-1 delays the effective date of the Patient Protection and Affordable Care Act's (PPACA) nondiscrimination provisions. These nondiscrimination provisions prohibit non-grandfathered insured group health plans from offering benefits that discriminate in favor of highly compensated individuals. The new rule was originally scheduled to be effective for non-grandfathered fully-insured group health plans on the first day of the first plan year beginning on or after September 23, 2010. However, recognizing that more guidance is needed before plans can implement any changes that may be required by these nondiscrimination provisions, the IRS, the U.S. Department of Labor and the Department of Health and Human Services collectively agreed to delay the deadline for complying with the nondiscrimination rules until after future guidance has been issued. Therefore, until further notice, the current nondiscrimination rules continue to apply only to self-funded group health plans. IRS guidance will not apply the nondiscrimination rules to fully insured non-grandfathered group health plans until after the issuance of the future guidance.
Click here to review IRS Notice 2011-1.
If you have questions regarding the application of PPACA to your group health plan, please contact our office at 517.371.8100 or 906.226.5501.