Can we give better benefits to higher wage employees & officers?
However, the IRS is not enforcing this rule as final regulations have not been issued. (Notice 2011-1) I googled & googled and as of 1.9.2018, still do not find ANY final regulations! Trumps Executive Order #13765 to minimize the burden of the ACA – Obamacare and #13771 to minimize regulations – one in two out, I guess mean that regulations won’t happen.
Check out the underwriting – participation rules the Insurance Companies are imposing in the mean time.
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PROHIBITION OF DISCRIMINATION BASED ON SALARY.
§2716 (a) IN GENERAL. The plan sponsor of a group health plan (other than a self-insured plan) may not establish rules relating to the health insurance coverage eligibility (including continued eligibility) of any full-time employee under the terms of the plan that are based on the total hourly or annual salary of the employee or otherwise establish eligibility rules that have the effect of discriminating in favor of higher wage employees.
(b) LIMITATION. Subsection (a) shall not be construed to prohibit a plan sponsor from establishing contribution requirements for enrollment in the plan or coverage that provide for the payment by employees with lower hourly or annual compensation of a lower dollar or percentage contribution than the payment required of similarly situated employees with a higher hourly or annual compensation. (Patient Protection & Affordable Care Act SEC. 2716. Section 2716 HR 3590 Page 17)
Latest Attorney Interpretations of pending final regulations & Guidance
- Arthur Gallagher Health Reform FAQ’s Page 111
- Benefit Malls Explanation
- Aetna FAQ’s & Explanation is an excellent reference source, including information on Grand Fathered plans.
Please note that the “Final Rule” (2.27.2013 13416 Federal Register Vol 78) allows an Open Enrollment Period where a Small Group can enroll without meeting participation or contribution requirements.
What is and how do I know if my plan is Grand Fathered?
National Underwriter Healthcare Reform Facts Q & A 239 et seq – Q & A 316 in 2016 Version
What and when is a Final rule 33 CFR 1.05-50 –
More Pages in the Management Carve Out Section
- Common Ownership – Affiliated Companies – Corporations
- Pre – Health Care Reform – Management Carve Outs
- Salary Discrimination §2716 – Not enforced
- Similarly Situated Employees
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