Salary non-discrimination of benefits
Note: Implementation of this provision has been delayed until additional regulations are issued. The description of this provision is based on the law itself. Provisions will be clarified under regulations when issued.
Applies to non-grandfathered plans
Requirement overview
- Employers can't offer better benefits to "highly compensated" employees at the top of the salary schedule.
- Health plans can require lower dollar or premium percent contribution from employees with lower compensation.
- Definition of highly compensated employees follows Section 105 of the Internal Revenue Code.
- Groups that establish simple cafeteria plans are exempt.
What Priority Health is doing
We don't have to do anything to comply with this requirement.
What you need to do
- Fully funded employers need to understand non-discrimination and what a highly-compensated individual is. It's up to employers to comply with this requirement.
- Self-funded employers should already comply with salary nondiscrimination rules for benefits.
Looking for more details about health reform?
