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Department of Treasury and IRS Clarify Tax Treatment of Direct Primary Care Arrangements and Health Care Sharing Ministries
Winston & Strawn LLP [Guidance Overview] June 18, 2020 "[T]he Proposed Rule does not address any issues under Title I of ERISA, such as whether any particular arrangement or payment constitutes, or is part of, an employee welfare benefit plan within the meaning of ERISA Section 3(1). However, the Proposed Rule highlights that an employer's funding of a benefit arrangement, in most circumstances, is sufficient to treat an arrangement that provides health benefits to employees as an ERISA-covered plan. Thus, DPCAs that are funded, in whole or part, by an employer subject to ERISA will likely be treated as employer group health plans for purposes of ERISA." |
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