Hot Topics in Health Care: ACA Delays Key Health Care Discrimination Provision

Yet another provision of the Affordable Care Act (ACA), section 2716 for you scoring at home, is being delayed by the Obama Administration.  The delayed provision prohibits employers from providing better health insurance to their management and executives, then to their other workers.  The reason cited for the delay is that the IRS cannot yet define: A) what highly compensated means; B) what health insurance is really worth; and C) what constitutes this practice as discriminatory.  Employers and employee alike are having a hard time wrapping their hands around this law as both appear to want a range of health care options, especially lower cost policies, which may be considered discriminatory under the new law.

When the law was signed in March 2010, this provision was supposed to take effect within six months.  Many cited that there already was a similar law on the books, one that was adopted 30 years ago, which applies to employers that serve as their own insurers.  The law would expand this concept to employers who purchase insurance from commercial providers like CIGNA and BLUE CROSS, to name a few and would heavily fine employers who are found to violate this law.  As of the print of this article, there is no date when the law is expected to start.


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  • Michael LaMagna, LNHA, MPA, JD concentrates in the areas of Medicaid and Advanced Asset Protection Planning, Elder Law, Trusts and Estates, Probate and Probate Litigation, Guardianships, Health Care Regulatory Matters, Nursing Home Placement, Long Term Care Insurance, Medicare Appeals, Social Security/SSI Litigation and Special Needs Law. If you have a question for Mr. LaMagna, please call him at (914) 437-5955.