Nondiscrimination Rules

Nondiscrimination rules specified by Internal Revenue Code Section 105(h) have long applied to self-funded health care plans. Provisions in the Affordable Care Act (ACA) extend these nondiscrimination rules to nongrandfathered fully-insured health plans. Although originally slated to be effective for plan years beginning on or after September 23, 2010, the effective date for the extension of these rules has been postponed until further guidance is released by the government agencies.

Government Resources
Analysis

Government Resources  

The IRS has released Notice 2011-1 which delays compliance with nondiscrimination rules for insured health plans until further guidance is released. The notice also requests additional public comments on specific concerns with these rules until March 11, 2011. 12/22/10 

The IRS has issued Notice 2010-63 to solicit public comments concerning the application of rules prohibiting insured group health plans from discriminating in favor of highly compensated individuals. Comments are due by November 4, 2010. 9/20/10 

Analysis