Does the non-discrimination provision mean that a corporation cannot pay 100 percent for owners and management if it does not pay 100 percent for all employees?
The new Health Care Reform law notes that beginning for plan years on, or after, September 23, 2010, health plans satisfy the non-discrimination requirements if: (1) the plan does not discriminate in favor of highly compensated employees as to eligibility to participate based on certain criteria under the code; and (2) the benefits provided under the plan do not discriminate in favor of participants who are highly compensated employees. Recent IRS guidance has delayed the effective date for fully insured plans to comply.
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