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Proposed Regs Would Expand Definition of Excepted Benefits to Cover Certain Types of Limited Wraparound Coverage
Littler Link to more items from this source
[Guidance Overview]
Dec. 24, 2014

"Under the proposed rules, limited wraparound coverage would be considered an excepted benefit if the following requirements are satisfied: [1] The coverage is specifically designed to wrap around eligible individual health insurance and provides meaningful benefits beyond coverage of cost-sharing. [2] The coverage costs no more than the maximum annual contribution for health flexible spending accounts. [3] The coverage does not impose a pre-existing condition exclusion, discriminate based on health status or discriminate in favor of highly compensated employees. [4] The sponsor of the coverage satisfies reporting requirements that will be set forth in later guidance; and [5] The coverage meets certain additional eligibility requirements."

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