Regs allow wraparound coverage for part-time employees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Regs allow wraparound coverage for part-time employees

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Excepted benefits, such as limited-scope dental and vision benefits, aren’t subject to the Affordable Care Act’s requirements to provide affordable group coverage that provides minimum value. Proposed regulations would include wraparound coverage as a new category of excepted benefits. This coverage would be available to part-time employees and retirees. Under these regs, wraparound coverage would be permitted under a pilot program that begins no later than Dec. 31, 2017, and lasts for three years. (79 F.R. 76931, 12-23-14)

Wrap around what, exactly? The coverage in these regs would wrap around non-grandfathered individual coverage. The intent is to allow part-time employees and retirees, who normally don’t have to be included in your group plan in order for you to avoid a free-rider penalty, to enhance the benefits they buy through the individual exchange. Classifying wrap coverage as an excepted benefit means that these em...(register to read more)

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