Saturday, January 1, 2011

IRS releases notice to postpone nondiscrimination rules for insured health plans

On December 23rd, the IRS released Notice 2011-1, exempting insured group health plans from the new PPACA nondiscrimination rules until final regulations are issued. The Notice provides that the Section 105(h) nondiscrimination rules will apply to insured plans beginning "a specified period after issuance" of final regulations. Prior to this Notice, non-grandfathered health plans were to comply with the nondiscrimination rules as of their first plan renewal after September 23, 2010.

Regulations are projected as early as the summer of 2011. For calendar year plans, the earliest the rules will apply is January 1, 2012; however, the effective date could be later.

Self-funded health plans are not impacted by the Notice and must continue to comply with the current Section 105(h) nondiscrimination rules.

No comments:

Post a Comment