ACA Impact on IRC § 105(h) Group Health Plan Nondiscrimination Rules

Summary

This practice note discusses the Patient Protection and Affordable Care Act of 2010 (ACA) rules requiring fully insured group health plans to satisfy the non-discrimination requirements of I.R.C. § 105(h)(2) under “rules similar” to those already applicable to self-funded group health plans. The ACA amended both the Internal Revenue Code (Code) and the Employee Retirement Income Security Act (ERISA) to incorporate certain provisions of the Public Health Service Act (PHSA), then further amended the PHSA to add section 2716. See ACA (Pub. L. No.111-148), section 1001(5). PHSA section 2716.