Final regulations: Health insurance wraparound coverage as “excepted benefits”

Health insurance wraparound as excepted benefits

The Treasury Department and IRS, jointly with the Department of Labor and the Department of Health and Human Services, issued for publication in the Federal Register final regulations (T.D. 9714) concerning “excepted benefits” and to specify requirements for limited wraparound coverage to qualify as excepted benefits.

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Excepted benefits are those that generally are exempt from the Affordable Care Act requirements, and the regulations concern limited benefits provided through a group health plan that wrap around either (1) eligible individual health insurance, or (2) coverage under a multi-state plan—i.e., limited wraparound coverage—that may constitute excepted benefits, if certain requirements are met.

The final regulations [PDF 282 KB] are effective on a date that is 60 days after their publication in the Federal Register, which is scheduled for Wednesday, March 18, 2015.

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