Insurers, Benefits Groups Express Concerns About Section 105(h) Rules for Insured Plans

Congress included new rules against discriminating in favor of highly compensated employees when it passed health care legislation, but the excise taxes on fully insured employers that violate those rules could trigger a rush to self-insured plans for which the penalties are less harsh, AARP said Nov. 4 in written comments to the Treasury Department and Internal Revenue Service.

IRS issued guidance Sept. 20 in Notice 2010-63 on the application of tax code Section 105(h) nondiscrimination rules to insured plans under the Patient Protection and Affordable Care Act (181 DLR A-5, 9/20/10). Section 10101(d) of PPACA created ...