Healthcare Reform - Prohibitions Based on Salary

Summaries based on the original text of the Patient Protection and Affordable Care Act (Passed by the US Senate 12-24-09. Passed by the US House of Representatives 3-21-10. Summary is for informational purposes only. Actual provisions and any amended portions of the bills apply).

Prohibitions Based on Salary

The plan sponsor of a group health plan (other than a self insured plan) cannot establish rules that favor eligibility – including continued eligibility – based on hourly or annual salary of any employee such that the rules end in discrimination in favor of higher wage employees (pp. 29, lines 20-25, pp 26, lines 1-2).

This rule does not prohibit an employer from establishing contribution requirements that allow lower compensated employees a lower dollar or percentage contribution than the payment of similarly situated employees with larger hourly or annual compensation. (pp 30, lines 3- 10).

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