Regulators Give Firms Grace Period for Health Law
The government will also clarify some key provisions in the law.

Companies grappling with deadlines associated with the new health care law will get a reprieve of sorts. Regulators will give employers and insurers a six-month grace period for some rules set to take effect Jan. 1. Firms won’t be penalized during the grace period if they are moving to comply. “This is an important step in the right direction,” says James A. Klein, president of the American Benefits Council, one of the employer groups that have been lobbying for more time to comply.
On Oct. 13, the IRS said it would hold off for a year on a requirement that businesses include the value of the health care benefits they provide to employees on W-2s. Employers may voluntarily start reporting the value on W-2s for 2011 – those issued early in 2012 -- but they won’t be required to do so until the 2012 forms are issued. The amount reported is not considered taxable income.
Other key easings involve internal claims and appeals standards. The grace period will delay a rule requiring insurers to make urgent care decisions within 24 hours instead of the current 72 hours; another requiring that firms give workers more information when claims are denied; and a third stating that communications be made in a “culturally and linguistically appropriate manner.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also, a softening of rules affecting external appeals for self-insured companies. Regulators are backing away from a requirement that self-insureds with nongrandfathered plans contract with at least three independent review outfits to handle final benefit appeals. Employers with self-funded plans will be allowed to have their third-party administrators do the contracting.
Clarification on rules requiring coverage of kids up to age 26 is included as well. Many companies voluntarily offer coverage to employees’ grandchildren, nieces and nephews if certain conditions are met, such as financial dependency or guardianship. Regulators will allow employers to continue to impose such restrictions without running afoul of the law.
Coming soon: Allowing firms to change carriers and keep grandfather status. Regulators are likely to modify an earlier plan to treat a change in carriers as an automatic reason to end grandfather status. The concern was that such a requirement would lock companies in with a carrier and stifle competition.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Amazon Ends Free Shipping Benefit Sharing with Non-Household Members
Starting October 1, Prime members will no longer be able to share shipping perks with those outside their household.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
AI Start-ups Are Rolling in Cash
The Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
What is AI Worth to the Economy?
The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?
-
Kiplinger Special Report: Business Costs for 2026
Economic Forecasts Fresh forecasts for 2026, to help you plan ahead and prepare a budget on a range of business costs, from Kiplinger's Letters team.
-
Trump-Era Regulations Will Broaden Access to Crypto
The Kiplinger Letter The president wants to make the U.S. the leader in digital assets.
-
How to Adopt AI and Keep Employees Happy
The Kiplinger Letter As business adoption of AI picks up, employee morale could take a hit. But there are ways to avoid an AI backlash.
-
The Rise of AI: A Kiplinger Special Report
The Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Big Changes Are Ahead for Higher Ed
The Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
AI-Powered Smart Glasses Set to Make a Bigger Splash
The Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.