AHIP Says Group Health Plans Face Complex Nondiscrimination Tests

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Insured group health plans will face “new and complex challenges” in meeting tax regulations designed to prevent discrimination in favor of high-paid employees under the new health care reform law, says a white paper sent by America's Health Insurance Plans to its executive members. There is “substantial overlap” between nondiscrimination requirements for cafeteria-type employee benefit plans and those that insured group health plans will be required to follow as of Sept. 23, but there also are substantial differences, the paper says. Definitions for highly compensated employees differ, and tests that are used to determine if benefits are being given disproportionately to highly compensated executives are not the same, the white paper says.