Home > Employee Benefits > The Affordable Care Act’s provisions on expatriate health insurance

The Affordable Care Act’s provisions on expatriate health insurance

flagsOn June 30, 2015, the Internal Revenue Service (IRS) and Treasury Department issued Notice 2015-43. The notice provides transition relief and interim guidance based on the application of particular provisions of the Affordable Care Act (ACA) to expatriate health insurance issuers, expatriate health plans, and employers in their capacity as plan sponsors of expatriate health plans, as defined in the Expatriate Health Coverage Clarification Act of 2014 (EHCCA).

The Departments of the Treasury, Labor, and Health and Human Services aim to publish proposed regulations on the requirements for expatriate health plans, plan sponsors, and health insurance issuers. The departments are welcoming comments on defining the terms “expatriate health plan” and “qualified expatriate,” in addition to the interaction of the EHCCA with existing relief for expatriate health plans.

In effect prior to enactment of the EHCCA and as a result of the guidance issued, the Departments have decided that issuers, employers, and plan sponsors need additional time and guidance to comply with EHCCA requirements. Until further guidance is issued and except as otherwise provided in Notice 2015-43, issuers, employers, and plan sponsors are permitted to apply the requirements of the EHCCA using a reasonable good faith interpretation. Specifically, treatment of an expatriate health plan, as defined in FAQs Part XIII, Q&A-1, and FAQs XVIII, Q&A-6 and Q&A-7 is a reasonable good faith interpretation. These good faith rules do not apply with respect to the PCORI fee and § 9010 fee.

The interim guidance is effective only for policies that are issued or renewed on or after July 1, 2015, and for plan years that start on or after July 1, 2015. This notice does not apply for purposes of the Affordable Care Act § 9010 fee. Notice 2015-29 addresses the application of the EHCCA to the § 9010 fee for 2014 and 2015 fee years. Future guidance will address 2016 and later fee years. WGA is continuing to monitor the definition of Expatriate health plans under the ACA and will publish any details that develop from the act. If you have any questions regarding the provisions please contact the Global Employee Benefits group.


About the Author

jim

James Kinney JD, LLM is a Senior Vice President at WGA, and leads the WGA Global Practice for Employee Benefits, overseeing the leadership of the firm’s international benefits strategy, including the placement of expatriate and local national programs.

617.204.6712| JKinney@wgains.com | Connect with Jim on LinkedIn
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