Regulations

Final Regs Issued On ACA Wraparound Coverage

By Robert Sheen | March 31, 2015

Final regulations on - wraparound under the Act were issued by the and Departments and Human Services and Labor.

Wraparound is -sponsored that may be offered to employees for whom the ’s primary is unaffordable and who obtain through the federal or state marketplaces. Typically the is eligible for to offset the the policy.

Because the plan may lower benefits, or use a different provider , than the company-sponsored plan, may supplemental or “wraparound” to make up the difference. The regulations specify these will be treated as “excepted benefits,” allowing to provide this without causing the to lose for the .

wraparound must be , the said, to the greater the maximum permitted annual salary reduction towards a FSA, or 15% the under the primary plan.

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