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.


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

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