The IRS announced last week that nondiscrimination rules for insured plans will not be required until further guidance regarding the rules is issued. As background, one of the provisions of PPACA required nongrandfathered insured health plans to meet the same nondiscrimination rules previously applicable to all self-funded health plans.

Notice 2011-1 delays the implementation of these rules and related sanctions "because regulatory guidance is essential to the operation of the statutory provisions, the Treasury Department, the IRS, as well as the Departments of Labor and Health and Human Services (collectively, the Departments), have determined that compliance with §2716 [the nondiscrimination requirements applicable to group health plans] should not be required (and thus, any sanctions for failure to comply do not apply) until after regulations or other administrative guidance of general applicability has been issued under PHS Act §2716."

The notice also states that in order to provide plan sponsors time to implement any changes required as a result of the regulations or other guidance, the Departments anticipate that the guidance will not apply until "plan years beginning a specified period after its issuance."

Click here to read Notice 2011-1.