Tuesday, January 21, 2014
On January 1, 2014 one of the provisions that was to go into place was taking away the ability of companies to discriminate towards highly compensated employees as it relates to health insurance. In other words companies were/are able to offer richer plans or pay more towards the cost of health plans for those top earners in an organization. Under the ACA that would not be allowed starting this year. However, no penalties will be applied until the IRS offers guidance on the rule. Since this hasn't happened yet, there isn't anything that would prevent companies from continuing the practice. It's becoming more and more apparent that nobody was ready for this law to be implemented.