The U.S. Departments of Labor, Health and Human Services, and Treasury have published final rules to amend the definition of excepted benefits to include certain limited wraparound coverage for employees who buy health coverage in the private market, including through Affordable Care Act insurance exchanges.
The final rules establish two pilot programs for wraparound coverage. One allows wraparound benefits only for Multi-State Plans in the Health Insurance Marketplace. The other allows wraparound benefits for part-time workers who could otherwise qualify for a flexible savings arrangement who enroll in individual market plan.
The rules give employees who otherwise might not be able to get generous employer-based benefits access to high level benefits.