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Just heard that carve outs are no longer allowed within groups. Does anyone know anything more about this?
Group Health Carve Outs
- Thread starter VolAgent
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- #3
- 15,041
That is what I was referring to, the carriers. Apparently it has something to do with the health care reform bill? If so, that sucks. That was the only way a lot of small businesses could provide benefits to their managers.
Can't say if there is a prohibition in Obamacrap or not, but employers have always had to tip toe around non-discrimination rules set up by the DOL. When carve out plans were offered you could discriminate by class but not within a class.
Salaried vs hourly is pretty straight forward. Management vs R&F is another way. Go much beyond that and you are on shaky ground.
Carriers have been moving away from carve out medical for at least a year. AFAIK, you can still set up an HRA on a carve out.
Salaried vs hourly is pretty straight forward. Management vs R&F is another way. Go much beyond that and you are on shaky ground.
Carriers have been moving away from carve out medical for at least a year. AFAIK, you can still set up an HRA on a carve out.
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- #5
- 15,041
We were going to do salary/management only. I guess now we will require a year of service first. Although, I understand that goes away in 2014 too. Limited to 90 days, right?
As they say in DC, I can neither deny nor support that contention.
Did a quick search and found nothing about carve outs using PPACA as the key word. Not saying it isn't in there, but I don't recall seeing anything in the past and nothing turning up via Prof. Google.
Do you have links to support a govt ban on carve out groups?
Did a quick search and found nothing about carve outs using PPACA as the key word. Not saying it isn't in there, but I don't recall seeing anything in the past and nothing turning up via Prof. Google.
Do you have links to support a govt ban on carve out groups?
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- #7
- 15,041
No, it is what my group guy told me. He said he checked with his reps and they told him no. Said it was going to get harder to use the time in service requirement in the future, too.
I'm just curious if anyone else has run into this, and if there are workarounds.
I'm just curious if anyone else has run into this, and if there are workarounds.
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Grandfathered plans may continue to have carveouts until 2014, but any new plans written as of 9/23 will not be allowed to have a carve out.
Although the regs do not specifically prohibit carve outs, their new non discrimination rules make them all but impossible to have. There are stiff penalties for discriminating in favor of highly comped employees, and a carve out will almost always put you out of compliance unless there are way more staff than field people.
The new laws do not allow for discrimination based on benefits offered or employer contribution.
These two issues are the biggest headache we have seen so far from the new bill.
Although the regs do not specifically prohibit carve outs, their new non discrimination rules make them all but impossible to have. There are stiff penalties for discriminating in favor of highly comped employees, and a carve out will almost always put you out of compliance unless there are way more staff than field people.
The new laws do not allow for discrimination based on benefits offered or employer contribution.
These two issues are the biggest headache we have seen so far from the new bill.
