HR Fast Facts: Non-Discrimination Under the Affordable Care Act
All plans established on or after September 23, 2010 are subject to non-discrimination rules under the Affordable Care Act (ACA). These rules are in place to ensure that health insurance plans and policies do not discriminate in favor of highly-compensated employees.
All plans established on or after September 23, 2010 are subject to non-discrimination rules under the Affordable Care Act (ACA). These rules are in place to ensure that health insurance plans and policies do not discriminate in favor of highly-compensated employees.
Rules for Non-Discrimination Under the ACA
To comply with the Affordable Care Act’s rules for non-discrimination, companies are subject to the following rules. Companies cannot look at compensation to determine health… Learn more
Penalties for Not Meeting Non-Discrimination Compliance
Companies are subject to penalties if they are non-compliant under the Affordable Care Act’s rules for non-discrimination. Penalties are $100 per day, per incident, with a maxim… Learn more
Highly-Compensated Employees Under the ACA
The Affordable Care Act defines a highly-compensated employee as follows: Employee is one of the 5 highest paid officers at the company. Employee is over the age of 25. Emp… Learn more
Employees Excluded From Non-Discrimination Rules
Some employees do not apply to the non-discrimination rules set by the Affordable Care Act. Those employees are defined as follows: Employees who have not completed 3 years o… Learn more
Eligibility Test for Non-Discrimination
Plans can establish classifications for eligibility based on reasonable business criteria. Reasonable Business Criteria Reasonable business criteria is typically based on any … Learn more
Benefits Test for Non-Discrimination
To ensure that benefits under a plan do not favor highly-compensated employees, companies can test the plan design and plan operation. Testing Plan Design for Non-Discriminatio… Learn more
