One of the components to health care reform that has been of great concern is the application of code section 105(h) on insured plans.  Plans that had lost grandfathered status would have been subject to the non-discrimination rules that self-insured or self-funded health plans were subjected to.

I say "would have been" because Notice 2011-1 provides that application of Section 2716 of the Patient Protection and Affordable Care Act (PPACA) is delayed until AFTER "regulations or other administrative guidance of general applicability has been issued."  Cal it a Christmas reprieve (and maybe even a miracle).

Many plan sponsors had been struggling with how to redesign existing insured plans to comply with 105(h) without having any actual guidance on how and what should be done.  If you have already undertaken to change you plan design to make a good faith effort to come into compliance with PPACA Section 2716, there is nothing that requires you to reverse that course.  Simply put, if you have not changed there is no requirement that you do just yet.  If you have changed, then you can at least rest assured that, for now, your insured plan is OK.  And when regulations and guidance are finally issued, we can start all over again.

If you have any questions about the impact of PPACA on your benefit plans, please contact your attorney at Fox Rothschild.