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Know the Rules

Originally published in UBA’s June HR Elements.

As reported by SHRM, a lesser-known provision of the Patient Protection and Affordable Care Act that will go into effect in January is fully insured health plans that have not retained grandfathered status under PPACA will be subject to the same nondiscrimination rules that have long applied to self-insured plans. Penalties for noncompliance can reach $500,000. The provision is designed to penalize organizations that discriminate in favor of highly compensated employees when it comes to offering particular benefits.