ACA nondiscrimination rule and controlled groups

[t.haley]

I know that the ACA has adopted the controlled group rules for purposes of the employer mandate. What about for the nondiscrimination rules? I have reviewed the final regs issued 5-18-16 and cannot find any discussion about it. I have a group the does not provide health services and receives no federal funding; however, they may be in a controlled group with an entity that provides health services and receives federal funding. Does the fact that the two entities are in a controlled group mean that the "non-health care" entity is now subject to the nondiscrimination rules just by virtue of being in a controlled group with the health care entity? Any guidance would be greatly appreciated!

[lvena]

The non-discrimination rules, which many believed would follow the self-insured non-discrimination rules, were never issued. However, there were rules released as it pertains to non-discrimination of groups of people, such as genetics, LBGT etc.

Hope this helps.

[t.haley]

Yes - those are the nondiscrimination rules I am referring to, and the regulations issued in May. My client, who does not fall within the definition of a "covered entity" under the regulations is in a controlled group with another entity that is a "covered entity." I am looking for any authority/guidance on the question of whether a not otherwise covered entity will be deemed to be a covered entity (and therefore subject to the nondiscrimination rules, notice requirements) simply by being in a controlled group with a covered entity. So far, I have been unable to find anything.

[Flyboyjohn]

I agree that the Regs for ACA 1557 non-discrim rules don't define whether a "Covered Entity" includes related entities under a controlled group analysis.

I have advised clients to be conservative and assume that all related entities are covered for 2 reasons:

1. Compliance is not that onerous, particularly if you can piggy-back off the compliance efforts by the other member in your controlled group

2. The government (particularly the current administration) wants to extend the 1557 requirements to as large a population as they can and will likely find ways to extend it to the related client even if they don't currently receive any Federal financial assistance.