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IRS Joins DOL to Close Wellness Plan Loophole in HIPAA
Deloitte via BenefitsLink 
[Guidance Overview] Mar. 11, 2008
Excerpt: The requirement that the supplemental coverage not differentiate among individuals based on any health factor is key. Effectively, IRS and DOL are saying they will not treat supplemental coverage as a HIPAA excepted benefit that is exempt from the HIPAA nondiscrimination rules unless the supplemental coverage itself satisfies the HIPAA nondiscrimination rules. Thus, tying the wellness plan reward to the supplemental coverage will prevent such coverage from being a HIPAA excepted benefit – and the wellness plan will have to satisfy the HIPAA nondiscrimination rules.
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