The Obama administration is seeking public comment on proposed rules that would amend the definition of excepted benefits to include certain limited wraparound coverage for employees who buy health coverage through Affordable Care Act insurance exchanges.
The proposed rules would allow group health plan sponsors, in limited circumstances, to offer wraparound coverage to employees who are purchasing individual health insurance in the private market, including through the Health Insurance Marketplace.
The rule proposes two pilot programs for wraparound coverage. One would allow wraparound benefits only for Multi-State Plans in the Health Insurance Marketplace; the other would allow wraparound benefits for part-time workers who could otherwise qualify for a flexible savings arrangement who enroll in individual market plan.
The proposed rules would give employees who otherwise may not be able to get generous employer-based benefits access to high level benefits. It responds to suggestions made on a proposed rule in December 2013 from a wide range of stakeholders, including business groups supportive of the idea.
The proposed rule would give businesses, including small businesses, new flexibility to meet the unique needs of their workforces.
A notice of proposed rulemaking was published in the Dec. 23, 2014, edition of the Federal Register.
The proposed rule affects the U.S. Departments of Labor, Health and Human Services, and Treasury, so all three cabinet departments will weigh public comment input.