New Discrimination Laws Part of Health Care Reform

This morning, we want to give you an overview of a seemingly overlooked section of the Patient Protection and Affordable Care Act (PPACA) regarding discrimination.

Effective for plan years beginning after September 23, 2010, PPACA amended the Public Health Service Act (PHSA) to impose rules similar to the nondiscrimination requirements of Section 105(h)(2) to insured group health plans. The Department of Health and Human Services has responsibility for interpreting the PHSA.

What do you need to know?

• Fully insured plans will now have to meet the same standards that self-funded plans currently do (i.e. eligibility)
• Having different classes of employees for benefits might prove to be problematic
• The penalty for violating these rules is $100/day - which certainly makes us take notice

It is too early to know exactly how these rules will apply to your plans, or how grandfathering could further change things. For more information, view the National Association of Health Underwriters' take on the issue. As we learn more from the Department of Health and Human Services, we will certainly let you know. Thank you for your time and have a wonderful week.