Jacksonville, FL (PRWEB) November 16, 2010
Medcom, one of the leading administrators of tax advantaged employee benefit programs and ERISA Regulatory Compliance Services, announced today the expansion of its compliance services to include Section 105(h) Non-Discrimination Testing services for fully insured health plans.
The recent Health Care Reform legislation (Patient Protection and Affordable Health Act-PPACA HR 3590) dramatically changed the landscape of non-discrimination testing requirements for employers who finance their health coverage on a “fully insured” basis and do not qualify for grandfathered plan status.
“Historically, employers who purchased fully insured health plans had the option of offering different coverage waiting periods, benefit plans and contribution schedules by class of employee and maintain full tax deductible status for the plan and employee,” said Larry Grudzien, an ERISA attorney practicing in Chicago. "That option went away with PPACA. Employers are now required to demonstrate that their fully insured health plans do not discriminate in favor of highly compensated individuals if they lose grandfathered status under Health Care Reform. They must complete the Section 105(h) testing in order to determine whether or not they are in compliance. Penalties for not successfully passing these tests amount to $100 per day for each employee who is not determined to be a highly compensated individual, one of the five highest paid officers, or shareholders who own more than the value of 10% of the employer stock.”
“Finding a reliable partner for this new level of plan testing is critical for our clients,” stated Kelley Clausen, an employee benefit consultant with Navigator Benefits in Atlanta. “We choose to work with Medcom for this important new service due to their commitment and responsiveness to the needs of our clients. They simplify what may be seen as an overly burdensome task for many employers.”
“Expanding our ERISA Regulatory Compliance Services into Non-Discrimination Testing for fully insured health plans is a natural broadening of our consulting practice,” stated Michael J. Bracken, President of Medcom. "We have the systems and processes in place to deliver first rate service for a growing number of employers and are excited to provide this service regardless of whether or not they utilize us for any of our employee benefit administrative services.”
Medcom is a leading administrator of tax advantaged employee benefit plans, COBRA administration and professional ERISA regulatory compliance services. Medcom is located in Jacksonville, Florida and was founded in 1983. Medcom serves employers and employee benefit consultants throughout the U.S. For more information about Medcom, visit http://www.emedcom.net.
For more information:
Michael J. Bracken, President
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