• Discriminatory Health Plans Will Be Subject to Significant Penalty Taxes
  • September 28, 2010 | Authors: Edward J. Rayner; Christopher J. Sues; Matthew O. Young
  • Law Firm: Pryor Cashman LLP - New York Office
  • The Health Reform Acts enacted earlier this year impose a $100 per day per participant penalty tax on group health plans discriminating in favor of “highly compensated individuals.” These penalties apply with respect to plan years commencing on or after September 23, 2010. Many group health plans use the calendar year as their plan year and for such plans these penalties would begin to apply for the calendar/plan year commencing on January 1, 2011.