Article Date:
August 2010

Word Count:



New Law Grandfathers Discriminatory Health Insurance

The one-owner business with employees often avoided the Section 105 medical plan because it contained antidiscrimination rules that essentially required coverage of all employees.


To solve the all-employee-coverage problem, many one-owner businesses established a health insurance plan that permits certain types of discrimination.


Example. Fred Smith, a sole proprietorship, has six employees, one of whom is Mrs. Smith, a key employee of the business. Mr. Smith covers Mrs. Smith with health insurance and provides no health insurance to the other employees. This ... Log in to view full article.

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