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No, you are incorrect. The ACA says "no limits on essential benefits"... not just preventative as you claim. Now let me remind you that the IRS & DOL have forcefully said "bare bones plans" are illegal. So yes, one could reimburse individual premiums on an after tax basis AND implement a compliant group health plan... however, the cost of implementing both make that strategy a loser. I've actually looked into this arrangement for a non-profit with high premium costs and very low wages... making a carve out very attractive. I found out Its just not worth it. The "juice isn't worth the squeeze". But according to your website, you don't advertise it this way, so again, purchase more E&O is my advice. I think we are all engaged because somehow your website appears fairly high in Google searches. Congrats on the SEO. But when these ideas you advocate arise (and they do because of your website's SEO), the competent advisors here have to spend our time convincing clients how non-compliant your ideas are. It also adds confusion to the general public and they "don't know who to believe" which creates more busy work for us. So if you could just stop, that'd be great. Now, If you are telling your clients all this, the incredible legal risk they take to save a few bucks... and they are willing to "go to bat" with you, cheers. But advertise it that way. Not doing so is malpractice.

But there are other rules that govern fiduciary conduct.

IMO, yes it does. 29 CFR 1625.10(d)(4)(ii) clearly confirms what you say Flyboy. I'm watching this eagerly as very large institutions are pitching "defined contribution". Sorry for the late reply, just browsing the forums.

Although interesting, this theorizing to make "reimbursement of individual premiums" as a viable strategy, is quite frankly, malpractice. The IRS & DOL have clearly come out and flatly said that an employer cannot reimburse individual insurance premiums. I'd up your E&O policy zbenefits. Just my 2 cents. I mean geez... how much more plainly can every regulatory agency put it! http://www.dol.gov/ebsa/faqs/faq-aca22.html