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Replaced by section 10101 of the Manager’s Amendment, summarized here. Requires group health plans other than self-insured plans to satisfy the requirements of section 105(h)(2) of the Internal Revenue Code of 1986 relating to prohibition on discrimination in favor of highly compensated individuals.
2010
On October 12, 2010, the IRS released a Notice requesting comments on the application of these rules.
2011
On January 10, 2011, the IRS issued a Notice regarding the timing of applying this provision. The Notice indicated that given the need for regulatory guidance, compliance “should not be required (and thus, any sanctions for failure to comply do not apply) until after regulations or other administrative guidance of general applicability has been issued.” The Notice also requested comments on issues and possible solutions that could be enumerated in such forthcoming guidance.
‘‘SEC. 2716 [42 U.S.C. 300gg–16]. PROHIBITION ON DISCRIMINATION IN FAVOR OF HIGHLY COMPENSATED INDIVIDUALS. øReplaced by section 10101(d)¿ ‘‘(a) IN GENERAL.—A group health plan (other than a self-insured plan) shall satisfy the requirements of section 105(h)(2) of the Internal Revenue Code of 1986 (relating to prohibition on discrimination in favor of highly compensated individuals). ‘‘(b) RULES AND DEFINITIONS.—For purposes of this section—
‘‘(1) CERTAIN RULES TO APPLY.—Rules similar to the rules contained in paragraphs (3), (4), and (8) of section 105(h) of such Code shall apply. ‘‘(2) HIGHLY COMPENSATED INDIVIDUAL.—The term ‘highly compensated individual’ has the meaning given such term by section 105(h)(5) of such Code.
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