Impact of Healthcare Reform on Church and Nonprofit Plans

As organizations renew their healthcare coverage, many are learning about the new nondiscrimination rules. For plan years beginning on or after September 23, 2010, a group health plan (other than a self-insured plan) shall satisfy the requirements of section 105(h)(2) on the Internal Revenue Code of 1986 (relating to prohibition on discrimination in favor of highly compensated individuals). Previously, most health care plans were allowed to provide benefits only to select groups of employees. Group health plans that existed as of March 23, 2010 may be “grandfathered” and continue to escape the nondiscrimination rules. Grandfathered status can be lost if the plan is modified. Two useful articles covering the subject are available by clicking the links below.