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Passed House amended (04/29/2014)
ACA related Insurance updates 2014
There are 2 summaries for this bill..
Passed House amended (04/29/2014)
Expatriate Health Coverage Clarification Act of 2014 – Exempts expatriate health plans, employers acting as sponsors of such plans, and health insurance issuers providing coverage under such plans from the health care coverage requirements of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.
Deems expatriate health coverage to be minimum essential coverage for purposes of meeting the individual responsibility requirements of the Internal Revenue Code.
Declares that a qualified expatriate (and any dependent) enrolled in an expatriate health plan shall not be considered a U.S. health risk for purposes of assessing the annual fee on health insurance providers that provide health coverage to any U.S. health risk for any year after 2014.
Establishes a special rule for calculating the amount of this fee for calendar 2014.
Defines a “qualified expatriate” as: (1) a participant in a group health plan who is an alien residing outside the United States, a U.S. national, a lawful permanent resident, or a nonimmigrant about whom there is a good faith expectation of being abroad, in connection with his or her employment, for at least 180 days in a 12-month period; or (2) an individual who is abroad as a member of a group determined appropriate by the Secretary of Health and Human Services (HHS). Editor – This has since changed. The IRS now states that any individual spending more than 30 days in a calendar year in the USA, and do not have credible coverage in the USA for that portion of the year, may be subject to IRS penalties this tax year. See https://www.healthcare.gov/exemptions-tool/#/results/2015/details/citizen-abroad for specifics. However, there is a two-month Short Coverage Gap Exemption that may apply to expats and overseas workers returning to the USA.
Understanding the recent bill HR4414
As we understand it, expatriates living overseas ore than 330 days a year or recognized as bone fide residents of a foreign nation are now officially exempt from ObamaCare, based on the President’s signing of HR4414 into law. Our carriers are presently having their legal departments interpret and respond to this bill. We are cautiously optimistic until we hear more details. Expect more early next year and then again in March/April. We are also awaiting more from the National Association of Health Underwriters (of which we are a member).
The bill 4414 exempts expatriate health care plans from the requirements of the Affordable Care Act, or its penalties. An “expatriate health care plan” is one in which participants are “qualified expatriates”; the bill defines a “qualified expatriate” as U.S. national, lawful permanent resident, or non-immigrant about whom there is a good faith expectation of being abroad, in connection with his or her employment, for at least 90 days in a 12-month period, or of traveling abroad on at least 15 occasions during such a period; or an individual who is abroad as a member of a group determined appropriate by the Secretary of Health and Human Services. Editor – This ruling has been updated. See the latest updates under ACA News Updates at https://www.gninsurance.com/aca-ppaca_how_does_it_affect_me/
The point of the bill was to protect and exempt expatriates and companies with workers overseas from having to pay for guaranteed U.S. coverages, when there was no expectation that their workers would use these coverages in the USA, since most usually already have special, high-quality health care plans designed to meet their unique needs overseas.
For background on the bill please see:
https://www.govtrack.us/congress/bills/113/hr4414 (Site not updated recently)
AETNA International Legal Update (Click to view online) – HR 4414
The Expatriate Health Coverage Clarification Act of 2014 was signed into law this week by President Obama as part of a consolidated appropriations act. The new legislation provides an exemption for certain expatriate plans from much of the Patient Protection and Affordable Care Act (PPACA). Aetna is currently reviewing the new legislation and expects regulations and additional guidance from the government in 2015 regarding this law.
Aetna will provide additional direction and more information as this situation develops and as more information becomes available.
Please contact your sales or account manager for more information.