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US Treasury Issues Clarification To Ease Transition For “First Dollar” Mandated Policies

The US Treasury will issue a clarification for companies with health plans that end on Decmber 31st and which are governed by states with so-called "first dollar mandates." Under the ruling, to be issued December 5th, companies with plans ending sometime in 2006 can keep those plans and still qualify for High-Deductible status.

Many states with first dollar mandates, that is, providing coverage from the first for such things as maternity will have time to adjust them during the calendar year as the new policies are put into effect.

The clarification was needed as many companies were concerned that their programs would not qualify as of December 31st, due to legislative inaction.

The full guidance is attached and can be viewed by clicking here.

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