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IRS DELAYS EFFECTIVE DATE OF NONDISCRIMINATION RULES FOR GROUP HEALTH PLANS
On December 22nd, the IRS issued Notice 2011-1 delaying the effective date of the provisions of the Patient Protection and Affordable Care Act (PPACA) requiring nongrandfathered insured health plans to meet the same nondiscrimination rules previously applicable to all self-funded health plans.
The notice released yesterday states that "because regulatory guidance is essential to the operation of the statutory provisions, the Treasury Department, the IRS, as well as the Departments of Labor and Health and Human Services (collectively, the Departments), have determined that compliance with §2716 [the nondiscrimination requirements applicable to group health plans] should not be required (and thus, any sanctions for failure to comply do not apply) until after regulations or other administrative guidance of general applicability has been issued under PHS Act § 2716."
In addition, employers will not be required to self-report the failure to satisfy these nondiscrimination rules on IRS Form 8928 (relating to paying a substantial excise tax for having a discriminatory nongrandfathered insured health plan) until the guidance has been provided.
The notice also states that in order to provide insured group health plan sponsors time to implement any changes required as a result of the regulations or other guidance, the Departments anticipate that the guidance will not apply until plan years beginning a specified period after its issuance.
More information pertaining to the nondiscrimination rules and regulatory guidance is expected sometime in 2011. Unison will continue to keep you up to date as additional information becomes available. If you have any immediate questions concerning your health plan, please contact your Unison Employee Benefits Consultant.
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| December 23, 2010 |
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From all of us at Unison
Wishing You a
Very Merry Holiday Season and a
Happy New Year !
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